The bold leadership within some of the largest companies in the county are seizing the moment and upgrading to newer buildings. The most recent of the bold decision-makers is Amadeus. They had been in their current location 26 years since the building was completed back in 1984. Now they are moving all 100,000 sf to One Park Square, a brand new building in Doral.
Another example from the industrial sector is Bel, Inc. which is relocating a whopping 342,750 sf by February 2011. They are consolidating three locations into one. This company makes personalized promotional items. Not only are they consolidating locations, they are upgrading into modern facilities with higher ceilings so they can install higher racks.
This strategy makes sense. It is incredibly expensive and complex for large tenants to move. Plus they usually have little or no choices. How many places can an elephant live? Moving in a downturn is an excellent idea for several reasons:
- Landlord concessions are generous – free rent, moving allowances, ample tenant improvement allowances just to name the most common.
- Government incentives are more readily available. Right now Miami Dade cannot afford to lose a single job, so the Beacon Council will bend over backwards to keep a large employer around.
- All the furniture, fixtures and equipment are less expensive. Let’s face it, nobody is selling a lot of new phone systems and office furniture these days. Used products are plentiful; competition is fierce so pricing is very reasonable.
- It’s an unpleasant fact, but, since most companies have undergone one or more rounds of layoffs, they are moving fewer people, thus making the move more affordable. When the US Southern Command left Panama, they staged the move by shrinking the base over a number of years so when they ultimately moved, the base was significantly smaller than it’s true footprint. Have you seen their new 400,000 sf building that is replacing their original 200,000 sf building?
Call me for a free lease analysis so you can determine if a bold decision is right for you. If you do not want to move, we level the playing field by jolting your landlord into providing you with a renewal that reflects the current market conditions.