In this three-part blog series, I’m offering an inside look at my recently published book, Don’t Sign the Lease! The Tale of a Triumphant Business Owner. Through this medium, my purpose is to educate the business community of the ins and outs of commercial real estate.
Ever work overtime and noticed your office becomes extremely stuffy after hours? Learn about the heated tale of William a hedge fund manager and owner of Gana Mas hedge fund. Enjoy the series!
“I’ve spent most of my career living in South Florida. If you are not familiar with South Florida, there’s a reason many North Americans, especially retirees known as “snow birds,” visit this region between November and April. Yes, the palm trees are nice, the ocean is beautiful, and the eclectic, cultural food is superb. But what truly draws millions of visitors to South Florida every year is the warm weather. While most of America is freezing and under snow during winter, we continue to golf, swim, grill, and ride our cars with the windows rolled down. Many tourists enjoy the tropical climate, yet it can also present challenges to business owners.
William, a mutual fund manager for a major New York financial firm, determined after years of planning to open his business and relocate to Miami (Florida has no state income tax!). His business would allow him to cater to his clients and pursue riskier yet potentially profitable investments. William opened Gana Mas, a hedge fund, and endeavored to find a small office in a Class A tower in the financial district. Shortly after signing the five-year lease, Gana Mas opened its doors on January 3.
William moved his residence into a hi-rise condo, one block away from his new office so he could walk to work. The cool, crisp sixty-five degrees South Florida winter weather welcomed William early the morning of January 3, and with an eleven dollar latte in hand, he opened the doors at 8:30 a.m. The first day swiftly passed and he finally closed the office at 8 p.m. later that night. The long hours and fast pace did not let down, and before he realized it, first quarter results poured in. Gana Mas was an overwhelming success outpacing all the major indexes. Soon, the second quarter results were in with advancing revenues and results. The demands of the new firm and the long hours never diminished and William was routinely leaving the office after 8 p.m. He had many affluent clients in Europe, and he needed to be available to them later in the day.
At the start of the third quarter, now July 1, William questioned if the high pace and the protracted work day was impacting his health. As the day’s activities continue, I seem to be heating up, he thought wiping sweat from his brow. Perhaps stress was gaining the upper hand, but it sure seemed warm in the office. The pattern continued. William noticed that toward the end of each day, beginning around 6 p.m., he perspired. Is it me, or is the office sweltering hot? As August approached, he could not take the heat any longer. The office was so hot and stuffy; he could no longer function as sweat drops would often fall on his paperwork, ruining his orders. He called the property manager.”
The Commercial Real Estate Knowledge blog series is based on an excerpt from Chapter 17 of Don’t Sign the Lease! The Tale of a Triumphant Business Owner entitled “Pitfall Seven: Hours of Operation – Overtime Charge.” For more information or additional resources, please visit www.dontsignthelease.com.