As all of us witnessed the "Big Deal" Lebron James negotiated and then announced last evening on ESPN. Hello Miami! Goodbye Cleveland. The buzz at nearly every water cooler in America is about this "Ohio Basketball Legend" today. What can we learn and apply to our own lives from this situation? It only makes sense for us to try to gain valuable life and business lessons from ONE person's very public career decision. Right?
In my role as the Marketing Director for PSB Realty Advisors, I am always looking for ways to educate and relate the value of the services our company offers to business owners. It's no secret that real estate is typically the largest fixed expense for a business. Are we as strategic in our approach to negotiating leases and purchases of property as we can be or do we try to be free agents? What lessons can be learned and applied to real estate negotiations from this media frenzy or as some refer to it-fiasco?
Lesson Number One:
Being a "Free Agent" Comes With a Price. Let's face it, Lebron is paying a price at this pivotal point in his career. While he has opened the doors to consider many cities and locations, he may not have considered that he would lose one of his best assets-his fans. We won't even begin to estimate the damage that is anticipated for the City of Cleveland. Commercial Real Estate negotiation decisions should be viewed similarly and have your full attention.
Business owners need Tenant Representatives and experienced Realty Advisors to provide direction on cost containment, leveraging incentives and for protection of important assets like clients and employees. While it may be attractive to move into a new "space", decision makers must consider the tangible or intangible price they will pay if they decide to be a "free agent." In most cases, a business owner will not incur any expense in by securing representation with an experienced real estate professional. More information about Tenant Representation and PSB services is available on our website at http://www.psb-realty.com/
Lesson Number Two:
When the Glitz and Glamour are Gone-All That's Left is Reality. Lebron's body language during the big announcement said it all. He was uncomfortable with his decision. Several hand-picked franchises were chosen to provide him with glitz and glamour through the process. He likely enjoyed every moment of it until reality set in. That reality is this: once you make a decision for a substantial period of time and it impacts people-there is no going back. As a business owner chooses "free agency" and negotiates a deal without guidance, discomfort is sure to abound in the afterglow. At that point, a contract is a contract and there is no going back.
Lesson Three:
The Grass is Not Always Greener on the Other Side. No matter how you try to position it-Cleveland is in the snow belt. Miami has the sunshine and the heat-no pun intended. For most of us, Northeast Ohio is not exactly a winter destination but, it's been Lebron's home and a place where a basketball legend was born. Apparently, he sees the sun and sand as greener grass.
A new real estate location may seem like the "greener grass" to a business owner. A new office may flash "bright lights, big city" but the current setting may be the very place that "brands" your business and offers the best financial feasibility for your business plan. With guidance from an experienced professional, staying in the same location could bring a championship win complete with incentives and cost containment.
Most of us can agree that we have all learned some life lessons as we have chosen to be "free agents" in the game of life. In today's internet-driven world, we research purchases, topics, make connections with professionals and make decisions. Let's all learn a lesson from Lebron-free agency is not always a bed of roses and comes with a price.
