Business Partners

Gallaway Commercial, Inc.: Tips for Renewing Your Lease or Relocating

Gallaway Commercial, Inc. is one of the SVALA’s Platinum Business Partners and many of our firms have used them during lease negotiations or relocation. Russel Gallaway, President of Gallaway Commercial, and Brian Kuklish, Vice-President of Project Management, not only sponsor SVALA but attend our luncheons and other special events as well.

Brian Kuklish and Russel Gallaway (l-r)
Brian Kuklish and Russel Gallaway (l-r)

I had the pleasure of sitting with Russel at the recent Workplace Update breakfast and our table had a fun discussion about kids, sports and how parents manage to be in three places at once! It is no surprise to me that Russel can pull that off yet still manage to run a successful business and keep his customers happy.

And, boy, are his customers happy! Just read these reviews!

Kellie B. Narayan, Executive Director of Wilke Fleury says, “Russel has helped negotiate and renegotiate Wilke Fleury’s leases for years and is an excellent resource and professional. The project management assistance Brian Kuklish provides is excellent and invaluable. Brian is patient, has a great sense of humor, is results oriented and committed to the highest quality result for any project on which he works. I have worked on Bay Area office relocations, a shell-to-finish build-out at the Ferry Building, and remodels of large commercial spaces, etc., and Russel and Brian are the Best!!”

Another Administrator, Joan Gabrielson of Cook Brown, just recently moved her firm and says, “Russel and Brian did a fabulous job listening to what our partners wanted then finding and moving us into our new space. They worked with us through the leasing process as well as worked with TI contractors, furniture and equipment vendors and the landlord – all the while communicating and working with the partners and myself. Their “nuts and bolts” approach of assisting with the entire move process was invaluable.”

Relocating or renewing a lease can be one of the most stressful projects of a legal administrator’s career. To help all of us at SVALA, Russel Gallaway took time out of his busy schedule to share a few tips.

Thank you, Russel, for this terrific information and for your sponsorship! (Be sure to also read their Business Partner Spotlight here.)

TOP 10 THINGS TO ASSESS WHEN RENEWING YOUR LEASE OR RELOCATING

2016 Holiday Party Cindy Pilon, Russel Gallaway, Craig Price
2016 Holiday Party
Cindy Pilon, Russel Gallaway, Craig Price

The second largest expense for law firms is the cost of their office space. Having a team of experts to represent you to minimize these costs is critical to protecting your bottom line. Here are 10 of the biggest issues to consider the next time you are dealing with your lease.

  1. Personal Guarantee. Is the landlord requiring a personal guarantee? Is it joint and several? There are multiple ways to decrease or eliminate personal liability.
  1. Expansion. Is the need to expand important? Do you have a hard option, first right of refusal, or first right of offer on contiguous space? Are the terms clearly delineated in the lease? This language can be very complicated and lengthy but is critical to be done right for a growing firm.
  1. Tenant Improvements. Is your deal turnkey or are you working on an allowance? How is the general contractor selected? Is the landlord charging a supervision fee? Who is paying for ADA/Title 24 upgrades that are triggered by the T.I.? It’s possible to quantify these potential costs and typically have the landlord shoulder these costs.
  1. Square Footage. How is your space measured? Is it gross square footage, useable square footage or rentable square footage? Firms often focus on $/SF, but you could be paying for a patio and don’t even know it. Verifying what you are paying for prior to signing a long term lease is just good business.
  1. Relocation. Does your landlord have the right to relocate you at their option? If so, what are the terms they can do this on? Ideally, this provision is struck from a lease. If the landlord will not agree to strike it, it can be scaled back drastically to make sure you get great space if the landlord exercises their right and you are compensated for the burden of relocation.
  1. Operating Expenses. Most law firm leases come with very expensive Tenant Improvements so the lease term is 7 to 10 years. Making sure your base year is grossed up properly, having reasonable operating expense exclusions, and having reasonable audit rights will ensure a landlord does not gouge you over the term of your lease.
  1. Exclusive Use. You probably don’t want your biggest competitor to put their name on your building or have a more prominent entrance to their space. You can typically prevent this from happening if you negotiate it into a lease.
  1. Relocation Costs. The costs to relocate your office are significant and should be quantified to make a sound financial comparison. A solid project manager should make sure that you are working through COB on Friday and you are up on Monday. Even if you only have ten attorneys, a day of lost productivity at $450/hour is $36,000.00.
  1. Delivery Delays. If you choose to relocate, what happens when your new landlord delivers your space late or doesn’t deliver your space? Making sure this is quantified and the burden is put on your new landlord protects your bottom line. In the event your new landlord continues to make excuses and doesn’t deliver your premises substantially complete, having the ability to terminate your lease is important.
  1. Property Taxes. Most law firm leases are full service gross which means operating expenses are included in the “base year” or the first year of the lease. However, landlords are still getting drastic reductions in their property taxes through Proposition 8 appeals. If you don’t have rights protecting you against this, you can potentially have significant property tax bills passed through to you for the term of the lease.

The above is by no means everything you need to consider when negotiating your next lease but these are good talking points to protect your firm and make it more profitable.

About Gallaway Commercial, Inc.

gallaway-logoGallaway Commercial, Inc., GCI, is an industry-leading commercial real estate company that exclusively represents business owners and specializes in representing law firms. GCI represents 30% of the Top 40 firms in Sacramento that lease space which is more than double their biggest competitor. The company only represents tenants and buyers – never landlords – which eliminates potential conflicts of interest that other real estate firms have. In addition to tenant and buyer representation, the firm also offers in-house construction management and project management services. Gallaway Commercial, Inc. is based in Sacramento, but represents clients’ needs across the United States.

Russel Gallaway is the President and owner of Gallaway Commercial, Inc. and can be reached at 916.801.8878 or rgallaway@gallawaycommercial.com.

 

Business Partners

Business Partner Spotlight: Caltronics Business Systems

Caltronics Business Systems has been a huge supporter of the SVALA and its members for a very long time. They have great partnerships with many law firms in the area so it was no surprise when they were ready and willing to participate in the SVALA Business Partner Program!

caltronicsIn fact, Caltronics was even advertising back when we were doing newsletters (you know, the paper version of a blog). 🙂

Greg Elko answered a few questions for us (between football seasons, of course) and we are happy he did! I have worked with Greg for several years and he is as enthusiastic about his company and products now as he was when I first met him.

Greg is energetic and works hard to get his customers the best deal possible and then stays in touch to resolve any issues and to make sure we are still happy with the equipment. I also know that, above all else, he is devoted to his family and that is exactly the kind of person with whom you want to do business!

Thank you for being a Gold Level Business Partner of the Sacramento Valley Legal Administrators Association. Please tell us why you chose to support our organization.

We chose to join the SVALA for the friendship and the networking in the legal field.

Please tell us about Caltronics and the services you provide.

Waterfall Hiking
Waterfall Hiking

We are the #1 Bizhub resellers in the country. We have sold over 70 million MFP copiers. We are also #4 in California for HP services and sales. Lastly, our software division has grown 300% in the past couple years by offering document storage, retrieval and index software.

Give us a little background about yourself. How long have you been in the business? How long have you been with Caltronics?

I have been in copier sales for 26 years and have worked with Caltronics for 23 years. We are family owned and operated. I love the people I work with and feel very blessed.

How is it different working with law firms than other non-legal businesses?

Legal-based firms are much more sophisticated and have much higher expectations, as they live in a world of documents and have deadlines which must be met.

Tell us how you would describe your working style. What makes you successful at what you do?

Follow up and follow through … I genuinely care about my clients and helping them. The experience I have in this field helps as well. 🙂

Tell us something fun you enjoy doing outside of work. 

Wilbur likes the pool!
Wilbur likes the pool!

I love waterfall hikes, coaching high school football at Jesuit High School and, most importantly, spending time with family.

During a follow-up conversation, Greg shared that he has a pet pig! Oh my goodness! Of course, the pig’s name is Wilbur . . .

What do you want the SVALA members to know about you and Caltronics?

I want the members of the SVALA to know that your friendship and our history are valued. Being a part of the SVALA meetings are fun because of these great friendships.

Many thanks to Greg for taking the time to answer our questions and for being a Business Partner of the SVALA.

Trish

 

 

Business Partners

Pacific Records Management: Destroying Hard Drives and Back up Tapes

One of the benefits given to our Platinum and Gold Business Partners is the opportunity to be “Spotlighted” on our blog! In the case of Platinum partners, they get an additional opportunity to share an article designed to educate our members related to their area of expertise. They benefit by letting our members get to know them a little bit better and we benefit from the information they share!

I love it when everyone wins!

bp-pacific-storage-logoPacific Records Management is one of our Platinum Business Partners and you can read their original spotlight feature here. In their second feature, Richard Steed, Vice President of Pacific Records Management shares great information about destroying old hard drives and back up tapes.

Thank you, Richard, for your sponsorship and for sharing this great info!

 5 Good Reasons to Destroy Old Hard Drives and Backup Tapes

bp-back-up-tapes-prmYou may have several reasons for keeping a stockpile of old hard drives and backup tapes. Maybe procrastination has gotten the better of you. Perhaps you think you may need to access that expired data someday or you’re concerned about outsourcing the destruction of your media. Whatever your concerns, fear is no replacement for the facts, so here are five good reasons you should destroy your old backup media.  Often this critical information is stored on other devices like copiers, computers, flash type drives and cell phones.

  1. Data Security

Old backup tapes and hard drives are a security liability. A single device can store hundreds of thousands of confidential data files, and electronic data can be compromised even when it’s out-of-date or the device it’s stored on is inoperable.

Deleting digital files from a device doesn’t completely obliterate the data. With the right tools and software, identity thieves and criminals bent on business fraud can still extract information from a tape or hard drive. Physical destruction of your devices is the best way to lower your company’s data breach exposure.

  1. Legal Compliance

Data breach consequences include fines and even criminal prosecution for failing to protect consumer information. Each of the following laws require organizations to safeguard personal, health and financial records from unauthorized access:

  • HIPAA
  • GLB
  • FACTA

Destroying your hard drives and tapes helps keep your business compliant with these privacy regulations.

  1. Cost Savings

In addition to fines and other costs associated with a data breach, don’t overlook the cost of storing old backup media. Every square inch counts when you’re paying a premium for office space. Hoarding outdated computers and storage media means there’s less room for revenue-generating activities. Incorporate regular hard drive and tape destruction into your data security plan to and maximize profitability.

  1. Client Trust

You work hard to gain the trust of your customers and wouldn’t want to throw it away by compromising their data. Having your old hard drives and backup tapes professionally and securely destroyed helps ensure total information privacy for your customers and your business.

  1. Brand and Reputation Protection

Besides creating a whirlwind of legal and financial problems for your business, stolen data can permanently damage your corporate brand and reputation. Some businesses never fully recover from a corporate data breach because of the punishing costs and destruction of the brand.

Media destruction keeps your information safe so consumers continue buy products and services from a company they know and respect.

Don’t let excuses get in the way of protecting your information. Destroying your old hard drives and backup tapes as well as other storage devices makes too much sense!

When deciding to destroy your hard drives, make sure you take the necessary steps to ensure the data is destroyed properly.  I heard from a recent prospect the other day that instead of having them shredded, he was going to have his kids in the garage take a hammer to them. While this may or not be effective, a more secure method like shredding beyond recognition will ensure the data is properly destroyed.

 

Business Partners, SVALA Activities

Workplace Update Breakfast

Are you confused by the ever-changing labor laws? Finding it hard to keep up with overtime regulations? What do employers do to handle the now legal (in California anyway) recreational marijuana use?

The group enjoying breakfast
The group enjoying breakfast

One of the most anticipated events of the year for our members is the Annual Workplace Update Breakfast which answers these and many other questions!

If only there were mimosas to go along with the headache all these changes are causing!

There may not have been mimosas but we did have two knowledgeable attorneys from the Labor and Employment team of Wilke Fleury. Bianca Watts and Samson Elsbernd walked us through unisex restroom signage requirements, amendments to the Fair Pay Act, the status of the Federal Overtime Rule and even what Proposition 64 (Recreational Marijuana Use) means for employers.

Bianca Watts and Samson Elsbernd
Bianca Watts and Samson Elsbernd

Samson spoke to our group in August on the topic of “Simply Sex . . . Sex, Gender, Gender Identity.” He was dynamic and knowledgeable then so it was wonderful to see him back speaking at the breakfast. Bianca and Samson took turns with the various topics and walked us through the 2017 updates. There was also quite a bit of audience participation since these new laws and regulations always generate a lot of questions.

As we learned, the minimum wage is increasing over the next few years which will impact the California minimum wage for exempt employees.

Kellie Narayan and Samson Elsbernd
Kellie Narayan and Samson Elsbernd

They also spoke on a topic that is near and dear to my heart: all-gender restrooms! Yes, I realize that might seem like an odd thing to be passionate about but it is not only an important topic for transgender people but also for caregivers caring for a member of the opposite sex. (I will spare you my embarrassing stories of sneaking into the men’s restroom while caring for my disabled brother!)

Samson told us that by March 1, 2017 all single-user restrooms must be labeled for all-gender. Woohoo! No more red-faced moments for me or uncomfortable situations for transgender persons.

Bianca and Samson covered too many topics to recap here but know that the breakfast was worth the anticipation and is something you will not want to miss next year.

Julie Denker and Kevin Valine of EPIC
Member Julie Denker with Kevin Valine of EPIC

Aside from the excellent speakers, we were able to visit with our wonderful Business Partners. What I love about visiting with our sponsors is their ability to attend events such as this as our peers and not as sales people. While I am sure they would love our business (and many of us are customers of some, if not all, of the sponsors), they are fun to talk with and get to know.

They are not just our Business Partners but have become our friends as well. And I’m not just saying that because I won a prize. 🙂

Past President Penny Stauffer and Debbie Jordan of Sacramento Placement Services
Past President Penny Stauffer with Debbie Jordan of Sacramento Placement Services

Many thanks to our Platinum Sponsors: EPIC, Gallaway Commercial, Pacific Records Management, Sacramento Placement Services, Sierra Office Supplies & Printing and Terrapin Technology Group. (Click on the hyperlink to read the Business Partner Spotlights!)

Many thanks to our Gold Sponsors: CMA Insurance Services, Caltronics, First Legal Network and Fujitani Consulting.

Our Silver Sponsors, FlexManage and Smile Business Products weren’t able to attend but we appreciate them anyway!

Pacific Records Management, Richard Steed and Mike Young with  Nitza Medina-Garcia and Isabel Garcia
Pacific Records Management, Richard Steed and Mike Young with Nitza Medina-Garcia and Isabel Garcia

We also appreciate our Bronze sponsors: ABA Retirement Funds, Ahern Insurance Brokerage, HumanScale and DFS Green!

Finally, I have to say a HUGE thank you to Kellie Narayan, the SVALA Program and Education Chair, who has done a spectacular job this year of lining up interesting topics and speakers. She convinced Samson and Bianca of her firm, Wilke Fleury, to speak at our annual breakfast and I am pretty sure she didn’t even have to bribe them (except maybe with the promise of breakfast).  Kellie has one of the most time-consuming positions on the Board of Directors but has handled her Education duties beautifully!

If you missed the Workplace Update breakfast this year, be sure to look for it again next January. I can’t promise mimosas but I can promise a few hours of education, fun and fabulous prizes!

That’s (almost) better than mimosas any day, right?

Business Partners

Business Partner Spotlight: Sierra Office Supplies and Printing

Sierra Office Supplies and Printing has been an important business partner of the SVALA for many years and has personally helped me drastically reduce supply costs for my firm.

bp-sierra-2015-law-firm-luncheon
Kim Pablis and Suzie Schuenemann at the 2015 SVALA Law Firm Leadership Luncheon

Several years ago I was pulling my hair out when the supply vendor I had used for years repeatedly changed my rep and, after several tries, didn’t listen to my concerns about service and price.

It was difficult for me to switch supply vendors because loyalty is important to me and I wanted to stay loyal to the company I had worked with for several years. However, they were not helping their case!

I eventually interviewed competitors, one of which was Suzie Schuenemann of Sierra Office Supplies and Printing.

I was familiar with their business but only had worked with Bill Silvan on the furniture side of things. (Bill is now the Regional Sales Manager and Corporate Sales Coordinator for Sierra.)

I talked with Suzie about office supplies and my goal of working together to keep costs to a minimum without sacrificing quality or efficiency. I stressed the importance of communication so we could keep costs in check and supplies in stock (even on a rush basis). Suzie and Kim Pablis worked as a team at that time and they both assured me they would do everything possible to fulfill those goals.

And they have!

We have been loyal customers for over eight years and Suzie and Sierra Office Supplies and Printing have been loyal supporters of the SVALA for at least that long.

Sierra Office Supplies and Printing also sponsored the SVALA November luncheon and Bill talked about developing a comprehensive branding and identity management package for our firms. Bill focused on print collateral, advertising as well as informational materials and specialty items for a firm’s marketing team.

Suzie recently took time out of her busy schedule to answer our questions for the Business Partner Spotlight feature.

Thank you for being a Platinum Business Partner of the Sacramento Valley Legal Administrators Association. Please tell us why you chose to support our organization.

A locally owned and operated business since 1981, Sierra values the importance of partnering with the local business community. Our expansive product lines and service capabilities fit well with the dynamic and deadline oriented needs of the law firm business environment. We believe it has been and will continue to be a valued partnership. Additionally, the SVALA members are a fantastic group!

Please tell us about Sierra Office Supplies and Printing and the services you provide.

With offices, printing facilities and distribution in Sacramento and the Bay Area, Sierra has become a leader in the office supply, printing, furniture, signage and promotional industries. Sierra is committed to create partnerships with clients and develop a “One Resource Solution” to the constantly evolving office environment.

Give us a little background about yourself. How long have you been in the business? How long have you been with Sierra Office Supplies and Printing?

I am a Sacramento native, born and raised in Fair Oaks. My son and his family live in Sacramento too. I started in sales in the late 1980’s as a facsimile salesperson. Remember those old thermal fax machines, the one with the roll of paper?! In the late 1980’s this was new technology to the marketplace; potential clients would say to me “great idea but who would I send a fax to?” It was a fun and rewarding entre into sales. Most of my clients were law firms at that time too. In 2000, I joined Sierra’s team and over the last 16 years I have been fortunate to forge many long term business relationships with so many of you. For that I am very grateful. My mantra in business is that “people buy from people they like and they trust” and I have always strived to meet that expectation.

How is it different working with law firms than other non-legal businesses?

I believe law firms are somewhat unique in that often times they are more deadline oriented, most likely due to case timelines. Law firms also have unique and specific office supply needs such as legal index tabs and specialty folders. To meet that need, we now stock in our Sacramento warehouse many items specifically for the law firm environment and for next day delivery.

Tell us how you would describe your working style. What makes you successful at what you do?

I guess I am somewhat of a workaholic. Customer service has always been very important to me. With today’s technology it makes it easier to be quick and responsive to my customers needs. I remember years ago a conversation I had with the Telecommunications Manager for Cable Data, which was the billing arm for Comcast then, and he was lamenting about how customer service in this country was sorely lacking and that he appreciated my attention to timeliness and detail. That drives me, the opportunity to exceed my customer’s expectations whenever I can.

Tell us something fun you enjoy doing outside of work.

I have a darling 6 year old grandson, Ryder, who I enjoy spending time with every chance I can. Having him spend the night is one of my favorite things to do. We catch up on what he’s been doing, watch movies, play games and bake cookies. He has a little sister on the way early next year and I couldn’t be more excited. I am also an avid gardener. I bought a house 14 years ago that had an extensive perennial garden that I have enjoyed tending and watch mature. Some of my winter bulbs are just now starting to pop up! I also enjoy taking long walks, camping at the beach, and visiting with friends over a nice dinner and good bottle of wine.

What do you want the SVALA members to know about you and Sierra Office Supplies and Printing?

On behalf of all of us at Sierra, we would like to extend our gratitude for the opportunity to continue over many years as a Platinum Sponsor of the SVALA. We are committed to helping the law industry in all facets of business to include office supplies, printing, furniture, signage and promotional. I am particularly grateful to have made so many wonderful friends in the law firms that I support. My job wouldn’t be the same without you!

Many thanks to Suzie for her stellar work with many local law firms and for being an ardent supporter of the SVALA. Suzie is spot on with her philosophy of “people buy from people they like and they trust.” Having known Suzie for so many years now, I know she is a likeable person and certainly one I trust to give my firm wonderful service at an excellent price.

Looking forward to seeing Suzie and many SVALA members at the Holiday luncheon this week!

Trish