Choyce Peterson Recommends Office Space Cost Estimator for Annual Budget Analysis of Rental Costs

Stamford, CT, Oct. 29, '10 -- Choyce Peterson, Inc. (www.choycepeterson.com), a commercial real estate brokerage and consulting firm, today announced a campaign to promote its Office Space Cost Estimator for companies conducting annual budget analyses in November and December.

Since many area companies are planning their budgets now for leases expiring in 2011 and 2012, Choyce Peterson is recommending the tool as an ideal way to create what-if scenarios to determine the cost for the full term of a lease. The cost estimator resides on the company’s web site and is offered without charge or registration requirements to any visitor at:

www.choycepeterson.com/tools/step-6-evaluate-your-alternatives/office-space-cost-estimator.html.

John Hannigan, Principal of Choyce Peterson, said, “In this season when many companies are budgeting for calendar years 2011,  2012 and beyond, and with office space one of the highest-cost line items, our Office Space Cost Estimator provides an invaluable tool to calculate total lease cost obligation numbers. For larger tenants, who tend to project five or ten years in advance, it is priceless.”

Hannigan went on to describe how the calculator works. You input a  square footage estimate, a range of rental rates and a preferred lease term, and the estimator then displays a chart of rents, loss factors, and nine different  total lease obligation results. It provides exact statistical comparisons for offices with a high loss factor and above average rent, efficient space rented below market value, and any offices in between.  In addition, it calculates an annual cost per headcount.

Alan Peterson, Principal of Choyce Peterson, added, “Testing a range of numbers can help you gauge where your company currently falls in terms of space usage efficiency and provides financial information  even before entering the marketplace. The impact of minor changes will astound you.”

Peterson cited as an example a 10-year lease with a rental of $30 per square foot for 10,000 square feet. Depending on other factors, the total lease obligation can vary by up to $1.5 million.