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Posts tagged "moving"

Home» Posts tagged "moving"

Central PA Loses Rite Aid and Harsco HQs – A Look at Causes & Impact

Posted on September 27, 2021 by Mike Kushner in Blog, Commercial Real Estate, Local Market, Office Leasing No Comments

In the span of about one week, both Rite Aid and Harsco made the major announcement that they would be transitioning their headquarters out of Central Pennsylvania and into Philadelphia. These major companies account for significant commercial office space and even more local jobs that now hang in the balance. The physical space is the most obvious asset to become vacated in the move. Rite Aid accounts for 205,000 square feet of space located at 30 Hunter Lane in Camp Hill. And Harsco currently occupies approximately 40,000 square feet of space located at 350 Poplar Church Road in Camp Hill. The relocation of these two company headquarters will result in an increase in vacancy in the Harrisburg West Submarket from 10% to 12.45%. In addition to physical space, local jobs, particularly the ones that are not conducive to a virtual work environment, are uncertain to make the transition.

According to the information shared in the official announcements from both Rite Aid and Harsco, we learned some valuable information about the plans for the transition, what fueled their decision, and how this stands to impact local jobs immediately and into the future. Keep reading to learn what these reasons are, how COVID-19 plays a role (or didn’t), and what this could predict of other companies choosing to do the same in the future.

Remote-First Work Approach

According to Fox News, Rite Aid is transitioning to a “remote-first work approach for corporate associates. Rite Aid stated that they had been closely monitoring associates who have been successfully working remotely since the early days of the pandemic. This provided valuable insight into how employees viewed this flexible style of work and the results it yielded. An internal survey found that a vast majority of these associates preferred working from home and found themselves to be more productive in their work.

Conversely, Harsco’s plans do not call for a hybrid workplace. Their new location is in the center of the city in Philadelphia and current plans point to transitioning back to working face-to-face.

Interestingly, a recent CoStar survey examined employee readiness to return to a physical work environment. Though the majority of workers responded that they were “somewhat okay” with returning to the office, a notable number of people expressed hesitation and concern about returning to work. Broken down by generation, ethnicity, and gender, the results look like this.

Rite Aid’s focus on moving to a new headquarters that accommodates an effective remote-first work approach makes sense. They are listening to the preferences (and hesitations) of their employees and using this as an opportunity to transition to a work style that fits the style of their team now and into the future.

The Appeal of Collaboration Space

Allowing for more employees to work remotely doesn’t fully explain why Rite Aid would pull its headquarters from Camp Hill and move to a more expensive market like Philadelphia. But maybe this will. In its official announcement, Rite Aid explained that its new model for use of its physical locations would be supported by a network of collaboration centers throughout the company’s geographic footprint. Its official headquarters in Philadelphia is a space specifically designed for in-person collaboration and company gatherings, instead of office spaces. This means what while more employees than ever will be working remotely when they do need to come together, the space they have is conducive for effective collaboration.

Both Companies’ Draw to Larger and Diverse Talent Pool

As is often said in real estate, it’s all about location, location, location. The new Rite Aid headquarters will be in Philadelphia’s Navy Yard district, an area that the city has been building up rapidly in recent years. This is an attractive area for a business because of its surrounding talent pool that is growing as rapidly as its new and accommodating options for office space. When hiring for positions that require in-person work, Rite Aid will now attract talent from the greater Philadelphia market as opposed to the more rural and much smaller Central Pennsylvania market.

Harsco, the company which was established in 1853 as the Harrisburg Car Company, operates in more than 30 counties and employs 12,000 people, but only about 100 in the Harrisburg area. Quite simply, it has outgrown this market. According to CBS21 News, Nick Grasberger, Chairman and CEO of Harsco Corporation says “We are confident that this move to America’s sixth-largest city will provide us with more options to the future resources needed to fuel our growth.”

Closer Proximity to Customers and Federal Government Agencies

One more reason Rite Aid shared for its decision to move its headquarters is its desire to be more centrally located to its customer base as well as federal government agencies. Philadelphia is a much larger market, sixth in the nation in fact, so there is little argument that its new headquarters will place it closer to a larger customer base, especially one that is urban and with greater diversity.

Speaking to the federal government agencies point, both companies are located within close proximity to state government, with the capital city right over the bridge from current headquarters in Camp Hill. The move is not to say that state issues and the connections made in Central PA are not of value, but it appears both have eyes on national growth. Making the decision now to move to a location with more federal government representation and connections is a strategic decision for the future.

What this Means for Central PA

Though the loss of the headquarters of two sizeable companies, both within a very close time frame, comes as a notable blow to Central PA, there may be a silver lining in all of this. Both companies were intentional about addressing the concern over lost jobs and focused on their intent to preserve as many local jobs as possible during the transition while opening up new avenues for job creation. The actual impact on local jobs remains to be seen, and with that comes the trickle-down impact on other industries such as hotels, restaurants, and retail stores that rely on the business from individuals who live, work, and play in Central PA.

Additionally, the loss of Rite Aid and Harsco will create a significant vacancy in commercial real estate in the local market. It remains to be seen what will become of their vacated space and what business will ultimately make use of it. With every loss comes opportunity. Whatever business moves into this space also brings the potential for jobs and economic growth. On the bright side, both companies have chosen to maintain headquarters in Pennsylvania which is better than moving outside the borders to a neighboring state. Both anticipate being in their new Philadelphia offices by 2023, providing ample notice for transition both for the business as well as for the Central PA and Philadelphia markets.

[Online Resources] Real Estate, camp hill, central pennsylvania, Commercial Real Estate, Economy, harriburg, harsco, headquarters, hq, impact, jobs, local, Mike Kushner, moving, news, offices, Omni Realty Group, pa, pennsylvania, philadelphia, regional, remote work, rite aid, trends, virtual work, virtual workspace

How to Prepare For a Commercial Business Relocation

Posted on June 25, 2018 by Mike Kushner in Blog, Commercial Real Estate No Comments

For any business who has navigated the challenges of moving into new office, retail or industrial space, you likely learned some valuable lessons along the way of things you would choose to do differently if you had to do it again. A commercial business relocation has a major impact on company culture, customer service and your bottom line. For this reason, it’s critical to be strategic about how you approach your move to set yourself up for a smooth and seamless transition.

To provide valuable insight on the topic of commercial business relocation, Omni Realty interviewed Dick Michaelian. Dick is a principal of Relocation Consulting & Management, Inc (RC&M) located in Mechanicsburg, Pennsylvania. Having been in the moving and storage business for over 36 years, with 26 of those with RC&M, Dick has helped local, state and federal governments, schools, colleges, healthcare, courthouses, museums and corporate businesses successful relocate to new facilities.

We asked Dick to answer five important questions regarding commercial business relocation covering everything from the biggest challenges to planning for a successful move. Take a look at Dick’s insight and advice that can be applied to any business or organization considering a relocation.

Omni: What are the biggest factors that cause businesses to relocate?

Dick Michaelian: The number one factor is change. While that sounds quite simple, it can be very difficult for an organization to change. Growing, shrinking, change of ownership or leadership are all examples of change. Other factors include the expiration of a lease or sale of a building as well as a desire to change a location because of customers or taxing entities.

Omni: For businesses considering a relocation, what are the most important details they should think through?

Dick Michaelian: A business should begin with the end in mind. How do you want everything to look and operate when the move is completed? From there, you should work back to where you are now and then determine how much time, money and effort will be required to get to where you want to be. Businesses often under estimate the amount of resources required for a good, effective relocation.

Another consideration is how to maintain your level of productivity during the transition. The last thing that should ever happen during a move is for a customer to be told “we can’t be of service to you because of our move.” The entire relocation should be virtually invisible to customers!

Finally, a business should strongly consider what and how it wants to change as a result of the relocation. Change will happen whether it is desired and planned or spontaneous and intrusive.

Omni: How early should businesses begin to plan for their relocation? 

Dick Michaelian: The planning should begin as soon as the decision is made that the business is going to move. I’m working with a client now whose move is planned for late 2020 and they want to get a clear picture of what is required for their budget. Planning can never begin too early. The actual implementation of the plan usually begins about four to six months prior to the relocation.

Omni: Describe your recommended planning process for corporate relocation.

Dick Michaelian: The planning process begins with leadership setting the path and goal. From there, it’s getting everyone to work together using the same data. Effective communication is critical. A ‘team’ approach works best, utilizing resources from different facets that will be playing a part in the move – large or small: IT, procurement, facilities, operations, administration and leadership. It’s essential to have a “big picture” perspective of the project while assigning expectations and due-dates to the players.

Once the plan is agreed upon and set, any changes should be well considered. You never want to change a plan in the middle of the move. That rarely proves successful in the end, as often the goal changes as well.

Omni: In your experience, what factors most commonly impact the success of a business’s relocation?

Dick Michaelian: The single most important factor are people moving. The reliability of the planning team members and their dedication to the success of the project is critical. No one person can be responsible for a fantastic move – it’s a team effort. However, one person can really make it hard for everybody else if they don’t want to move or change. Management has to set the tone. Getting the different elements to buy into the change that needs to occur is difficult; but, with the right vision and passion, good leaders will help their organizations through the necessary transition. I always enjoy observing this process with successful businesses.

Moving can be very difficult. Good leaders who recognize that they are in the “people business” have the most impact on the success of a relocation.

Another factor is timing. You never want to move until the new space is ready. And yet, most relocations occur without a new, completed space. Construction delays, last minute changes and contractors not performing are the major causes of this situation.

You can create a great new working environment for your business; but, if the move goes poorly, that’s what everyone will remember. Don’t underestimate the vital importance of a well-planned, smoothly executed relocation from beginning to end!

Is your business considering a relocation to new retail, office or industrial space? What piece of advice did you find most helpful? Join in the conversation, or ask a question by leaving a comment below!

[Online Resources] Real Estate, advice, business, central pennsylvania, commercial, Commercial Real Estate, company, industrial, Mike Kushner, move, moving, office, Office Space, Omni Realty Group, organization, relocate, relocation, retail, tips

4 Risks of Working with Real Estate Brokers Who Represent Both Buyers and Sellers

Posted on June 10, 2015 by mike.kushner in Blog, Tenant Representative/Buyer Agent No Comments

It is a safe observation based on over 30 years of real estate practice that the vast majority of consumers – in this case real estate buyers/tenants and sellers/landlords – do not understand the concepts of “agency.”  One might also observe that a significant segment, if not most, of the licensed real estate practitioners do not completely understand the concepts of “agency.” This is not so much an indictment of real estate licensees as it is a statement on the twisted, awkward and convoluted nature of agency laws that have been imposed on our industry by our esteemed governing and regulatory bodies.

The Real Estate Licensing and Registration Act (RELRA) requires that consumers be provided with a Consumer Notice at the initial interview or meeting. Instead of boring you with an explanation of the entire Consumer Notice, I am going to tell you about the most important part:

Buyer Agent (or Tenant Rep): As a buyer agent (or tenant rep), the licensee and the licensee’s company work EXCLUSIVELY for the buyer/tenant even if paid by the seller/landlord.  The buyer agent (or tenant rep) MUST act in the buyer’s/tenant’s best interest, including making a continuous and good faith effort to find a property for the buyer/tenant, except while the buyer/tenant is subject to an existing contract, and must keep all confidential information, other than known material defects about the property, confidential.

What does all this mean?  If you are buying or leasing commercial real estate you want a Buyer Agent/Tenant Representative to represent you. Here are four risks that you don’t want take:

Risk #1: Your broker will be representing two opposite interests

When you think about a tenant or buyer and a landlord or seller, each has a need that is opposite of one another. Everyone involved also wants the best deal at the best price. This is where the inherent conflict exists. A real estate broker cannot equally represent both parties’ interests while negotiating hard. A better deal for one party means a lesser deal for another party. Someone will always play second fiddle. Do you want to risk this person being you?

Instead, look for a real estate broker who only represents clients like you – either a tenant/buyer or a landlord/seller. Not both.

Risk #2: You may be pushed into an option that is not best suited for you

The second risk of working with a real estate broker who does not exclusively represent one party is that you may not be presented with all of the options available to you. For example, you are looking for office space and your broker represents several landlords who have office space available. You are likely going to be pushed toward choosing from these properties first before they show you outside properties with which they have no association.

While this makes perfect business sense for your broker, it doesn’t benefit you in the same way. You deserve a broker who will exclusively represent your interests as a buyer/tenant and do all the research necessary to find your ideal property – beyond their own internal client book.

Risk #3: You will not have your broker’s undivided time and resources

You are not likely to ever be your broker’s only client (unless business is exceptionally slow). A good broker will try and dedicate adequate time to meet your needs in a timely fashion, but a broker who represents both sides will have even less available time for you. In addition to fielding your questions, requests and negotiations, they will also be juggling the same from the landlord or seller with whom they want you to sign the deal. .

Ensure your needs will made a priority by working only with a broker who exclusively represents you as a buyer or tenant.

Risk #4: You will get a “Jack of All Trades”…but a master of none

As mentioned in the introduction of this article, for some industries it is an advantage to be a “Jack of All Trades.” In real estate, however, specialization if critical for remaining unbiased and motivated to only work in the favor of one side of the negotiating table. A similar example would be a lawyer. Would you want to be represented by someone in court who was advocating for your case as well as the person arguing the opposite side? The same is true when selecting your real estate broker. You don’t want a mediator; you need someone who is completely free to take your side and negotiate 100% in your best interest…and this is a an exclusive tenant representative or buyer agent.

Have you worked with a real estate broker who represented both tenants and buyers as well as landlords and sellers? Was your experience good or bad? Share your story by commenting below!

[Online Resources] Real Estate, advice, broker, buyer, buyer agency, buyer agent, camp hill, CCIM, central pa, commercial, conflict of interest, danger, exclusive, guide, harrisburg, industrial, information, lancaster, landlord, lease, mechanicsburg, Mike Kushner, moving, negotiation, office, Omni Realty, owner, pennsylvania, rent, renter, renting, retail, risks, seller, space, tenant, Tenant Representation, warning, york

6 Signs You Are Using the Wrong Commercial Real Estate Broker

Posted on April 21, 2015 by mike.kushner in Blog, Office Leasing, Tenant Representative/Buyer Agent No Comments

Moving your business to a different location or bigger space is a critical decision that will have a profound impact on both your employees and your bottom line. To help navigate this tricky process, you need a commercial real estate agent/broker who is experienced, creative and professional.

Unfortunately, people often find themselves stuck with an agent/broker that lacks these essential qualities or who simply isn’t a “good fit.” As a result, they risk making a bad real estate decision or no decision at all – and their business suffers the consequences.

If you are currently working with a commercial real estate agent/broker – or you will have to at any point in your future – take note of these red flags that will help you identify whether the agent/broker is fit to best serve you.

  1. Your agent/broker doesn’t make you feel like a priority.

Your agent/broker should promptly and professionally answer your phone calls and email within a reasonable amount of time. He or she should also go the extra mile for you, seeking out options that are outside-the-box, to prove that you are not just another potential “deal” but a person whose business has unique needs.

If for any reason you doubt that you are a priority for your agent/broker, you need to address this with a conversation. If not resolved, you should take your business elsewhere and work with someone who makes you feel like more of a priority.

  1. Your agent/broker offers little advice.

People who are good at their jobs are not afraid to offer sound advice and observations to those in need of help. Why else would you work so hard to become skilled at something if not to use those abilities?  If your agent/broker is not offering you advice and guidance in a transaction, then something is not right.  Either he or she is too inexperienced to know what is going on or the agent/broker is not particularly helpful by nature. Regardless, you need someone who is helpful and can exercise leadership in this process.

  1. Your agent/broker represents both buyers/tenants and sellers/landlords.

Your commercial real estate agent/broker should be looking out for the best interests of you and your business – and no one else’s. The unbiased advice and specialization of one-sided representation are just a few of the benefits of working with an agent/broker who exclusively represents tenants and buyers.

If you are working with an agent/broker who represents both buyers/tenants and sellers/landlords, even the perception of bias should be enough to make you question whether the properties her or she is showing you are best suited to your needs – and not just a property owned by a landlord/seller he or she represents.

  1. Your agent/broker has not earned their Certified Commercial Investment Member (CCIM) designation.

The CCIM designation is conferred by the CCIM Institute, a commercial affiliate of the National Association of REALTORS®. This designation requires 200 classroom hours and is similar to college graduate-level education. If your agent/broker has earned a CCIM, you know that he or she is committed to the commercial real estate industry, is staying current with changes and trends and has the advanced education to better serve you throughout the entire process. Additionally, CCIMs are bound to the strictest ethical guidelines and standards of practice in the industry today.

If you are not working with a CCIM, you can’t be guaranteed that your agent/broker has this same level of commitment, knowledge and expertise as one who does.

  1. Your agent/broker leaves a bad first impression.

When you meet your commercial real estate agent/broker, take first impressions seriously. Not only are they a good indication of personality and professionalism, this is the same first impression that other landlords/sellers will be greeted with as he or she represents you in potential deals.

Look for an agent/broker who is organized, well put together, confident, but friendly and overall, likeable. These qualities will make it a pleasure working with him or her and these are also qualities that will represent you, the tenant, well when it comes to negotiating leases.

  1. Your real estate agent/broker is a “poser.”

Not all real estate agents/brokers are created equal. Residential real estate agents/brokers, sometimes known as Realtors, are qualified to sell houses and other small residential dwellings but are not usually qualified to give advice regarding commercial property. Residential agents/brokers normally have little knowledge of and experience with commercial properties. This lack of expertise will end up costing you both time and money as well as increase your legal liability. And likewise, a commercial agent/broker may not be the right choice to represent you in selling or purchasing a house, as they are not usually experienced in such matters.

When beginning your commercial real estate search, carefully select an agent/broker that is uniquely qualified to advise you on commercial real estate with a tenant or buyer’s interests in mind.

Do you have experience working with a commercial real estate agent/broker – good or bad? Share your story and what you learned from it by commenting below!

[Online Resources] Real Estate, agent, bad, broker, business, buy, buyer agent, camp hill, central pennsylvania, commercial, growth, harrisburg, industrial, lancaster, lease, location, mechanicsburg, moving, negotiate, office, own, realestate, red flag, rent, retail, signs, space, success, Tenant Representation, wrong, york

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