I have a buyer’s agency contract with a local business man. He’s interested in purchasing a large commercial building adjacent to his property so that he can open an “add on” to his business.
The building is about 3,000 square feet with a very large parking lot surrounding it. It’s owned by an organization that, at one time, used most of that space and parking lot on a regular basis. But times have changed. The membership now has no need to come to that location anymore; technology keeps them in touch. So, only the board members, who meet once a month, and the three regular staff people use the facility. My client knows that at least two of the board members feel they should find a different, more “right-sized” location. The property is not listed for sale.
I drafted an offer to purchase for my client – with a fair market price – and presented it to the group’s treasurer, who then presented it to the board of directors. They turned it down for no other reason than “We’re happy where we are.” Tradition and habit seem to be keeping them there, even though the cost of utilities and maintenance of an under-used building and parking lot would be enough for most people to look for something that makes more sense.
The treasurer is one of those who thinks they should sell, so I asked him if I could look for and suggest available office spaces that better fit their needs: 1. Close to major highways so their reps could reach the office more easily, 2. “Make sense” square footage that matches office staff and storage needs, 3. Equipped with updated lighting/utilities, more natural light, and a smaller parking lot, 4. Located in a retail area, so staff and visitors would have restaurants and stores to visit during lunch or after work (they currently are near nothing).
I found six “nearly perfect” office properties that will be included in a presentation at the organization’s next board meeting…along with some nice incentives offered by the potential buyer. We’re hoping that the ideas we put in front of them will help them look at their current situation more realistically, and that they’ll see the benefits to downsizing for their organization.
Wish us luck! We’ll be making the presentation in a couple weeks and I’ll let you know how it goes.
Meanwhile, if you want some “stand back” creative thinking done for your business, give me a call at 920-621-3990. There’s no charge for a consultation.
Gary Van Sistine, Business Intermediary