Facility Solutions: Creating beneficial lease agreements
Consider these key points when negotiating the lease for a new branch or headquarters space.
In just the past few years, I have seen several credit unions reprioritize their delivery focus from branches to digital, particularly in the areas of mortgage, auto and business lending. These changes are increasing growth and profitability by substantially reducing operating cost, and the evolution is not likely to stop. This means we need to be as flexible as possible. Leasing rather than owning branches seems to make sense for all but the most stable, profitable locations.
The first lease acquisition step is to determine a location and size based on your strategic business and marketing plan and projected shifts in delivery priorities over the next five to 10 years. Then select a real estate agent that is going to help you find the right site rather than just the most available location. Your work together will result in selecting a site, sending a letter of intent with your initial offer and completing the lease. Below is a list of key points to consider as you negotiate the lease:
- Is the space calculation based on BOMA measurements to ensure you are paying for the right square footage?
continue reading »
