The Space Acquisition Process
The primary goal underlying all assignments handled by Frank A. Witt & Associates is to make sure that the results of the project fit a real estate strategy that increases the effectiveness and profitability of the client's operations. In attaining that goal our specific objectives are to:
Understand the dynamics of the client's business and the effects of “real estate” upon it;
Identify the space best meeting the client's financial and non-financial criteria;
Negotiate economic terms reflecting the best possible value in the marketplace;
Assure that the layout and design of the space will enhance the client's environment and serve the client's long term needs.
Ensure that the client will encounter no surprises, either during the project or after the deal is consummated; and
Conserve the client's time by gathering, evaluating, and presenting all information required for making and supporting decisions.
In accomplishing these objectives we deliver the following services:
Development of a strategy based upon space, location, and timing requirements, amenities needed, and the essential financial/operating environment within which the client's business must function;
Establishment and maintenance of a schedule embracing all steps in the process, and management of the project to effect timely and successful completion;
Identification of all properties meeting the client's requirements;
Inspection of all properties in which an interest exists;
Solicitation of proposals from those properties in which a serious interest exists;
Evaluation of both the financial and non-financial characteristics of those properties;
Negotiation of the business issues for the property of choice;
Review of the legal issues for negotiation by the client's attorney; and
Coordination of all parties' responsibilities following contract execution.
The entire process is shown schematically in the chart below. We believe the results will be primarily dependent upon two elements: strategic planning and timing.
The acquisition of space, by its very nature, usually represents a long term commitment to an expensive asset. Thus the process should begin only after the organization has undergone a strategic planning activity, for only such an activity can produce an appropriate understanding of the future space needs of the organization. Additionally, since the space acquisition process, itself, usually spans a considerable period, allowing enough time to accomplish all the steps is critical to achieving the highest possible value in the ultimate acquisition. (This period should even include time to sit back and wait if no attractive alternatives are found.)