Louisville Business First reached out to our Principal Broker Paul Grisanti to get his expert wisdom for companies that are planning a relocation to Louisville. His advice in a nutshell: give yourself plenty of time.
His full answers are below:
What’s your best piece of advice to a company that is relocating?
Do not underestimate the time needed to properly go through the search process, and to find, or build, the facility for your needs. This time line will be determined by the size of the project and the marketplace.
Typically, the larger the project, the more time needed. And certainly, if a company is going to build, this takes more time. If the market is tight, this again adds to the time needed to find the right space. And if the company’s ideal space is not available, it will take time to research, and maybe find a property which is not on the market.
Now, after the perfect site is found, a tenant, or buyer does not want to be rushed. Proper due diligence must be followed to ensure that all of the boxes are checked. The specific items to investigate depends on whether the transaction is a purchase, a lease or a construction project. But I … assure you, it will take more time than you think, unless it is a very small project. And even a small project will take time to review pertinent documents. So the bottom line is this: plan for extra time.
What is a common mistake companies makewhen searching for new commercial space?
Underestimating or overestimating the space needed. This calculation must take multiple factors into consideration. First, if your business is growing, this growth rate must be considered into the space needs.
However, it is also very important to understand how an efficient operation can save on the amount of space needed. This is true for industrial, retail and office operations. I’ve seen companies desire larger space due to growth, and I’ve seen companies desire smaller space due to more efficient operation, or because they have outsourced an aspect of the operation, or because another aspect of the business model changed which resulted in space needs changing.
Also, not understanding the environment in a new city. Maybe a company is moving because they need to be closer to a customer, or a supplier. Or they want to expand to increase market share. Thorough investigation must be done to fully understand the total environment in a new location. This includes the market for space being plentiful, or tight. Is the labor pool able to fill the company’s needs? Will the company readily find space that is zoned for the company’s operations If the company’s required zoning is not available, it will take time to find the correct zoning, or to go through the rezoning process. (And rezoning a property may become expensive, especially if there is resistance from neighbors, and government.) Time spent in advance of any planned move will pay off later in time saved after a decision is made.
Grisanti Group has helped several clients with relocation and new location projects just this year. We represented Jacksonville-based DCI Collect on locating a new call center in Louisville and we represented Care Innovations on their office relocation. Fortunately, both of these clients understood the need to start early, and these projects will be completed within the target windows.