The best-case scenario has occurred — your business is doing well and you are considering relocating your laboratory. You want to be thoughtful in your approach because relocating takes time and focus away from your current day to day function as a business.
What is the best timing to begin and complete the process as to minimize the interference to your operation?
Where should you relocate to?
Should you consider purchasing as opposed to leasing now that your business has taken off?
These are the decisions many face when approaching this next stage of a company’s growth. We will address three top factors affecting your decision when expanding your life science company.
1. Timing
One of the most important factors when it comes to relocating your laboratory is having enough lead time to allow you the flexibility in making the move. The sooner you begin looking for expansion space for your New Jersey lab, the better. Having a limited window to complete the lease or sale transaction for a new location will reduce your flexibility and leverage and cause unnecessary pressure. Looking for an expansion option can take 18 months or longer. This time frame will include qualifying your future needs, identifying options, making a location decision, negotiating favorable terms, finalizing lease or sale documents, and designing and completing a buildout. Also allow time to schedule a phased in move for equipment recalibration and recertification. Temperature-controlled items may need to be moved.
2. Location
Many companies locate in areas convenient to the executives and employees. When deciding to expand or relocate, the distance from your current facility may affect desirable options. Not ironing this out upfront can lead to delays and disagreements later on. Selecting an appropriate location with capabilities to meet your specs can be quite time consuming as you need to qualify each option for existing available laboratory space in New Jersey. Factors which may influence your decision are the current buildout or base building delivery conditions, power availability, parking, dedicated loading etc.
3. Lease or Purchase Option
Existing lab buildings are less common and new buildouts or renovations can be very costly and take additional time. As such, whether you continue to lease or look at purchase options is a decision that typically involves the input of several individuals. The financial ramifications can differ greatly, so it is beneficial to have a spreadsheet with a long-term comparison on the costs for both scenarios. Both upfront and long term expenses and responsibility for maintenance must be considered. Costs to modify the space, as well as a down payment, can impact the decision.
Whether you are limited to available space in close proximity to your existing location or not, getting decision-makers to agree on a new location, and if you should lease or purchase, greatly affects the direction of the relocation search. Therefore, begin examining the various factors involved in relocating your laboratory as soon as possible in order to smoothen the process.
Please call for more information about current available lab space for your life science company in New Jersey.
—
Jeanne Sabo-Rothenberg, CCIM
Commercial Advisor
eXp Commercial
Cell: (908) 377-9004
https://www.commercialrebroker.com/
jeanne.sabo@expcommercial.com