The sum of the parts
Alex Rose, CALC Product Manager, looks at how to compare traditional and flex space costs, easily and accurately
Businesses are facing unprecedented disruption. With shifting geopolitical factors, prolonged uncertainty around Brexit and a fiercely competitive marketplace, it’s clear that senior leaders have more to deal with than ever.
Comparing flexible and traditional leases can be difficult, not least because of the number of variables that are characteristic to each lease option
Changing consumer habits have fast changed customer expectations of the companies they interact with. And as we’ve seen from the big-named brands that have fallen by the wayside of late, businesses that can’t shift their tempo to this new beat could well be leaving the door wide open to those that can.
The c-suite is wising up to the fact that it must move quickly and nimbly in order to stay in the game. And commercial real estate has duly followed suit, adding increasingly flexible space solutions to the table for occupiers who need less rigid alternatives to traditional leasing options.
The emergence of compelling flexible alternatives poses a new challenge for time-stretched business leaders already grappling with the impact of shifting customer dynamics on their business: identifying value within this choice.
Comparing a flexible license agreement with a traditional lease can be difficult, with the leasing format encompassing more variables, and the all-inclusive nature of the flex option not always clear with information. The choice now for occupiers is extensive, increasingly looking towards the flexible market for value, talent attraction and flexibility. The challenge is navigating through these fields with comfort.
CALC, CBRE’s Agile Lease Calculator, was designed to give occupiers clarity in comparing two distinctly different office solutions. The free, interactive web-based tool helps businesses understand the financial impact of flexible and traditional lease options using state-of-the-art technology and proprietary modelling techniques.
CALC looks at the cost of different leasing types in the context of various business growth scenarios and risk profiles. The solution considers different pricing structures and the impact of headcount uncertainty on both footprint and cost.
The analysis takes just minutes, following which users will be presented with a comprehensive report that sets out the total cumulative cost and the cost per lease term, for both standard and flexible leases, in line with their requirements.
CALC: a snapshot:
- CALC enables users to generate an accurate comparison in just a few easy steps
- Users can choose pre-populated market data or enter their own information, such as lease terms and current and future headcount projections
- Users can compare best and worst-case scenarios across various lease terms to understand the true cost of real estate over time
- The intuitive programme presents findings in an easy-to-use, modern interface, with the flexibility for businesses to create PDF reports in order to guide an informed discussion