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From The Desk Of Michael Stone: The Seasons Affect More Than The Weather

We all work on short deadlines and against hard stops. It’s just the nature of the corporate world today. But if you’re procrastinating on making a leasing decision, consider this a word of warning against that approach.

The concept of “seasonality” isn’t just applicable to buying a residential home. In the corporate office sector, there are fairly consistent cycles as well. For example, the fiscal year end (December, if you’re on a cash basis) tends to slow corporate real estate activity to a crawl through the early winter. You’ll want your CFO and finance team involved in any real estate decision, and, quite frankly, they’re a little busy that time of year!

Similarly, spring and early summer tend to be stable, while mid-summer to late summer is a season unto itself. Vacations and other diversions that time of year can cause landlord-tenant negotiations to drag, and volatility to be high. The point is that, if your business is making its real estate decisions with 3 – 6 months left on your lease, you’re running a huge risk of losing your leverage in your lease negotiations (especially if you don’t have a solid “Plan B” lined up). Start earlier, as much as 12 months if possible, and avoid the fluctuations that come with the seasons.

The Stone Group

12912 Hill Country Blvd,

Building F, Ste. 201,

Austin, TX 78738

Phone. 512-732-8700

 

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