After 17 years in the same location, it was time for KasCon to take the next step in our growth and move our offices to a larger space with more amenities. As painful and disruptive as picking up and moving was after almost two decades, we had no choice. We embarked on the process so many of our clients experience, finding the right location, negotiating a lease, designing the space, obtaining a building permit, constructing it and, finally, moving.
There is an old saying that the shoemaker’s kids go shoeless, and I was determined that the adage would not apply to us. With decades of experience, one would think that such a process should go flawlessly. Knowing what to do and doing it are very different things. Our office move demonstrated some positive things I would recommend, and it also revealed some lessons learned that I felt worth sharing.
Balance Setting a Realistic Timeline with Getting a Jump on the Project – Failure to Get it Right Can be Costly
The process from touring the space to move-in is frustratingly linear. It’s unrealistic to start task B before finishing task A without potentially wasting money. Case in point, you want to be sure to wait until your new lease is firmly locked down before engaging too many resources formally such as space planners, architectural or engineering services. Doing so may be costly if you aren’t quite ready.
Even with our extensive experience, we should have been more conservative when building our timeline. During our move, we needed to extend our current lease by a couple of weeks which was quite costly. This could have been avoided by just adding some extra time for the unknown and starting that much earlier.
Be Very Clear on the End of Lease Expectations with Your Landlord
Meeting with the Property Manager in advance of your departure and obtaining and agreeing to very specific requirements for removal of items etc. will expedite that process and the return of your security deposit. You won’t have time to deal with it during the move, so clarity up front will be a big help and will avoid unnecessary trips back to your old space. We had a significant number of built-ins in our old office space and, there was a misunderstanding as to which ones were ok to leave as is and which ones needed to be removed. Ultimately, our lack of clarity cost us a fair amount of back and forth and extreme inefficiency at the time of our move-out. This could have been avoided with better communication with the Property Manager.
Don’t Put Off Decisions on Those Few Last Items…They Will Come Back to Bite You
Designing a new office requires literally thousands of decisions. Many of these are delegated to architects, engineers and designers to guide you and narrow the field using their experience. Other decisions that remain, but don’t appear to be critical at the moment, tend to lag. Human nature takes hold and after making all the critical decisions there are others that tend to be put off. I experienced this with items like new side chairs for the offices and the display of photos throughout the space. When the decisions about these post move items were delayed, the project was held up. Now, what seemed like an insignificant decision at the time, resulted in delaying the finished look by months. By the time we decided where to put our artwork/project photography around the space, we ended up having to redo our hallway lighting to accommodate and showcase the photos appropriately. This was costly and could have been avoided with earlier planning. Resist the temptation to put off any decision, down to the very last item, so the entire project stays in sequence.
Examples of What Went Well
I was very proud of the project overall with a few notable areas where we avoided potential pitfalls with proper and thorough planning. We did a comprehensive analysis of the heating and air conditioning in advance of negotiating the lease. As a result, we were able to negotiate a complete replacement and redesign of the HVAC and now the space is comfortable and well-controlled.
Also, while it isn’t very sexy, we identified water infiltration issues during the demolition phase of the project. By discovering this early and working with the landlord in advance, we were able to resolve the problems permanently and avoid future disruptions and costs.
Conclusion
Relocating an office is a huge undertaking filled with opportunities to either plan wisely or learn some hard lessons. Hopefully our insights, both positive and negative, prove useful to others embarking on an office move. With thorough preparation, clear communication, and swift decision-making, the process can be far smoother and more rewarding than you might expect. Here’s to your company’s next chapter in a great new space!
KasCon is pleased to celebrate 25 years in business. Established in 1999, KasCon has grown consistently while maintaining a high level of quality and service. We are a trusted commercial real estate partner whose expertise and experience allow us to add value to the entire commercial real estate process. We thrive on the most challenging projects from concept to completion.
Our Approach – The “+”
KasCon’s approach is centered on developing a 360-degree view of every project. We look at each project as more than a transaction. We capture the whole instead of just focusing on the pieces traditionally assigned to the contractor. We ask questions, uncover goals, and seek to understand the needs of our partners and clients. We are managers + builders +. The extra + is a philosophy of going above and beyond expectations.
Core Values Drive Success
Solid core values have a way of driving success in all facets of business, attracting and maintaining quality personnel, managing the best value subcontractors and providing our clients with exemplary service. Today we hold the same core values we started with 25 years ago:
Responsiveness: Everything we do is time critical. With KasCon you will receive responses to e-mails and calls in hours, not days.
Transparency: We provide straightforward honest answers, communicate clearly and succinctly, and make sure even complex issues are clear and understood.
Doing the Right Thing: It’s a simple rule that works in every situation whether it be an internal HR concern, a subcontractor issue or collaborating with a partner or a client.
Loyalty and Respect: KasCon focuses on building relationships with our partners and team members. We believe that if we treat everyone with respect and appreciation, the final product flourishes.
Concept to Completion
KasCon prides itself on contributing throughout the entire project life cycle. We don’t shy away from building estimates from limited concept information. We want to participate, provide input, offer suggestions, and build value. We manage and navigate the critical pre-construction process, aggressively schedule and construct our projects, and close them out in a way that leaves a lasting impression and creates the repeat business that has been a constant for 25 years.
Expertise and Experience
The KasCon team is anchored by experienced leaders. President Jeff Kassman brings over 35 years of professional experience. His philosophy of not just managing construction but acting in his client’s best interests, in all aspects of a project, is shared by the entire organization.
KasCon’s record of success, financial stability, strong working capital and bonding capacity mean that no matter the economic climate or changing circumstances of a project, we’ll be here to complete the work and support our clients.
People First
Our philosophy of putting people first means our people stay – we are proud of a 95%+ retention rate. Those values and an experienced stable workforce yield great work. We provide a generous compensation structure and are committed to training and developing our team members. To accommodate our growth and future expansion plans, KasCon recently moved into new, larger office space and is actively hiring.
We’re excited that our new offices provide a terrific physical location for the next 25 years of growth!
/wp-content/uploads/2019/03/kascon_logo.png00Lisa Robey/wp-content/uploads/2019/03/kascon_logo.pngLisa Robey2024-04-16 16:01:222024-04-16 16:02:38KasCon Celebrates 25 Years of Going Beyond Construction!
KasCon closely monitors trends and their impact on our business to ensure we can effectively serve as managers and advisors for our clients and their projects.
As we step into 2024, the commercial construction landscape has begun to stabilize in several areas and reached a new normal while other elements continue to evolve. In this blog post, we’ll highlight how we expect various factors to impact commercial construction, including: supply chain and materials pricing; interest rates; and labor and regulatory challenges. In addition, we will discuss our thoughts on the direction of various market sectors within commercial construction.
Supply Chain and Materials Pricing: The stabilization of supply chain issues and materials pricing is noteworthy. Both are now more predictable compared to the years immediately after the pandemic, though lead times are still longer, and prices higher, than pre-pandemic levels. This poses challenges for the market in aligning construction costs with rental and real estate purchase rates.
Interest Rates and Real Estate: An anticipated downward trend in interest rates could drive increased investment in the real estate market. Though construction costs remain high, the shift in interest rates may influence deals and offer opportunities for both buyers and sellers. If short-term seller financing is an option, deals may have a greater likelihood of closing as there is optimism that a positive re-finance in the 4–5-year window is plausible.
Staffing and Labor: Finding talent continues to be a challenge and we expect ongoing pressure on salaries and overall compensation through 2024. As a result of the labor shortage, we see less experienced talent in areas of responsibility among many commercial real estate influencers. This can result in extended timelines, and a need for more collaboration to be certain that some experience is brought to an issue. The labor shortage trend appears to be slowing, and we expect to see at least a slight increase in talent availability by year’s end.
Processes and Regulations: Regulatory hurdles continue to impact construction timelines and costs. Energy efficiency and stormwater management regulations continue to significantly drive-up construction costs. There seem to be more disagreements between the code interpretations of plan reviewers and inspectors seemingly caused by labor shortages, and perhaps experience as discussed in the Staffing and Labor section above. This adds an additional layer of complexity to the approval process.
While commercial construction activity continues, the volume varies dramatically by market segment.
Office: The Office market continues to be significantly affected by the reality that hybrid and remote work environments are here to stay. Class A spaces outperform other classes, and tenants not in large growth industries are downsizing at time of renewal. Construction costs seem to be extending lease durations.
Industrial: The industrial sector, which experienced highs during the pandemic, is cooling off, as it appears some as companies may have overbuilt. The sector nevertheless remains active, particularly for companies requiring complex logistics and transportation access.
Healthcare: The healthcare sector remains strong, driven by high demand and stable long-term occupancy. Consolidation within the industry is fueling deals as larger organizations tend to have the cash and wherewithal to forge ahead with projects despite budget challenges. We anticipate a robust market for healthcare-related construction projects will continue in 2024.
Retail: Despite the changing retail landscape, retailers still express a desire for more shelf space. Cash-rich chains with long-term leases are expected to dominate, emphasizing the importance of financial stability in navigating the retail sector.
Traversing the complex landscape of commercial construction in 2024 requires adaptability and strategic decision-making. Supply chain stabilization, fluctuating interest rates, evolving office dynamics, and sector-specific trends underscore the importance of working with partners who are agile, experienced, and understand the challenges all parties are facing in the ever-changing world of commercial construction.
/wp-content/uploads/2019/03/kascon_logo.png00Jeff Kassman/wp-content/uploads/2019/03/kascon_logo.pngJeff Kassman2024-01-29 19:38:582024-06-22 16:23:37Navigating 2024: Trends and Outlook in Commercial Construction
Lessons Learned: KasCon’s Office Buildout
After 17 years in the same location, it was time for KasCon to take the next step in our growth and move our offices to a larger space with more amenities. As painful and disruptive as picking up and moving was after almost two decades, we had no choice. We embarked on the process so many of our clients experience, finding the right location, negotiating a lease, designing the space, obtaining a building permit, constructing it and, finally, moving.
There is an old saying that the shoemaker’s kids go shoeless, and I was determined that the adage would not apply to us. With decades of experience, one would think that such a process should go flawlessly. Knowing what to do and doing it are very different things. Our office move demonstrated some positive things I would recommend, and it also revealed some lessons learned that I felt worth sharing.
Balance Setting a Realistic Timeline with Getting a Jump on the Project – Failure to Get it Right Can be Costly
The process from touring the space to move-in is frustratingly linear. It’s unrealistic to start task B before finishing task A without potentially wasting money. Case in point, you want to be sure to wait until your new lease is firmly locked down before engaging too many resources formally such as space planners, architectural or engineering services. Doing so may be costly if you aren’t quite ready.
Even with our extensive experience, we should have been more conservative when building our timeline. During our move, we needed to extend our current lease by a couple of weeks which was quite costly. This could have been avoided by just adding some extra time for the unknown and starting that much earlier.
Be Very Clear on the End of Lease Expectations with Your Landlord
Meeting with the Property Manager in advance of your departure and obtaining and agreeing to very specific requirements for removal of items etc. will expedite that process and the return of your security deposit. You won’t have time to deal with it during the move, so clarity up front will be a big help and will avoid unnecessary trips back to your old space. We had a significant number of built-ins in our old office space and, there was a misunderstanding as to which ones were ok to leave as is and which ones needed to be removed. Ultimately, our lack of clarity cost us a fair amount of back and forth and extreme inefficiency at the time of our move-out. This could have been avoided with better communication with the Property Manager.
Don’t Put Off Decisions on Those Few Last Items…They Will Come Back to Bite You
Designing a new office requires literally thousands of decisions. Many of these are delegated to architects, engineers and designers to guide you and narrow the field using their experience. Other decisions that remain, but don’t appear to be critical at the moment, tend to lag. Human nature takes hold and after making all the critical decisions there are others that tend to be put off. I experienced this with items like new side chairs for the offices and the display of photos throughout the space. When the decisions about these post move items were delayed, the project was held up. Now, what seemed like an insignificant decision at the time, resulted in delaying the finished look by months. By the time we decided where to put our artwork/project photography around the space, we ended up having to redo our hallway lighting to accommodate and showcase the photos appropriately. This was costly and could have been avoided with earlier planning. Resist the temptation to put off any decision, down to the very last item, so the entire project stays in sequence.
Examples of What Went Well
I was very proud of the project overall with a few notable areas where we avoided potential pitfalls with proper and thorough planning. We did a comprehensive analysis of the heating and air conditioning in advance of negotiating the lease. As a result, we were able to negotiate a complete replacement and redesign of the HVAC and now the space is comfortable and well-controlled.
Also, while it isn’t very sexy, we identified water infiltration issues during the demolition phase of the project. By discovering this early and working with the landlord in advance, we were able to resolve the problems permanently and avoid future disruptions and costs.
Conclusion
Relocating an office is a huge undertaking filled with opportunities to either plan wisely or learn some hard lessons. Hopefully our insights, both positive and negative, prove useful to others embarking on an office move. With thorough preparation, clear communication, and swift decision-making, the process can be far smoother and more rewarding than you might expect. Here’s to your company’s next chapter in a great new space!
KasCon Celebrates 25 Years of Going Beyond Construction!
KasCon is pleased to celebrate 25 years in business. Established in 1999, KasCon has grown consistently while maintaining a high level of quality and service. We are a trusted commercial real estate partner whose expertise and experience allow us to add value to the entire commercial real estate process. We thrive on the most challenging projects from concept to completion.
Our Approach – The “+”
KasCon’s approach is centered on developing a 360-degree view of every project. We look at each project as more than a transaction. We capture the whole instead of just focusing on the pieces traditionally assigned to the contractor. We ask questions, uncover goals, and seek to understand the needs of our partners and clients. We are managers + builders +. The extra + is a philosophy of going above and beyond expectations.
Core Values Drive Success
Solid core values have a way of driving success in all facets of business, attracting and maintaining quality personnel, managing the best value subcontractors and providing our clients with exemplary service. Today we hold the same core values we started with 25 years ago:
Concept to Completion
KasCon prides itself on contributing throughout the entire project life cycle. We don’t shy away from building estimates from limited concept information. We want to participate, provide input, offer suggestions, and build value. We manage and navigate the critical pre-construction process, aggressively schedule and construct our projects, and close them out in a way that leaves a lasting impression and creates the repeat business that has been a constant for 25 years.
Expertise and Experience
The KasCon team is anchored by experienced leaders. President Jeff Kassman brings over 35 years of professional experience. His philosophy of not just managing construction but acting in his client’s best interests, in all aspects of a project, is shared by the entire organization.
KasCon’s record of success, financial stability, strong working capital and bonding capacity mean that no matter the economic climate or changing circumstances of a project, we’ll be here to complete the work and support our clients.
People First
Our philosophy of putting people first means our people stay – we are proud of a 95%+ retention rate. Those values and an experienced stable workforce yield great work. We provide a generous compensation structure and are committed to training and developing our team members. To accommodate our growth and future expansion plans, KasCon recently moved into new, larger office space and is actively hiring.
We’re excited that our new offices provide a terrific physical location for the next 25 years of growth!
Navigating 2024: Trends and Outlook in Commercial Construction
KasCon closely monitors trends and their impact on our business to ensure we can effectively serve as managers and advisors for our clients and their projects.
As we step into 2024, the commercial construction landscape has begun to stabilize in several areas and reached a new normal while other elements continue to evolve. In this blog post, we’ll highlight how we expect various factors to impact commercial construction, including: supply chain and materials pricing; interest rates; and labor and regulatory challenges. In addition, we will discuss our thoughts on the direction of various market sectors within commercial construction.
While commercial construction activity continues, the volume varies dramatically by market segment.
Traversing the complex landscape of commercial construction in 2024 requires adaptability and strategic decision-making. Supply chain stabilization, fluctuating interest rates, evolving office dynamics, and sector-specific trends underscore the importance of working with partners who are agile, experienced, and understand the challenges all parties are facing in the ever-changing world of commercial construction.