Managers provide valuable input and analysis for business operation expansion planning efforts. We’ve seen how various legal issues related to ownership and use of property can impact those planning efforts. Assume that, in this chapter’s Theory to Practice problem, you are part of a three-person management team for RSI and have received the following e-mail from your senior manager:

RSI is developing expansion plans that include new facilities in the southwestern United States. At this time, we are considering leasing office and operational space in several large cities but are interested in a particular 25,000-square-foot facility that has an ideal location and rental rate. However, at this time, we need only 10,000 square feet. The landlord has said that she is willing to negotiate lease  but that we must lease the entire 25,000-square-foot space. RSI wants to expand but keep risk and financial exposure at a minimum.

Research alternatives for possible subleasing or assigning of the unused space to third parties, and develop a short presentation (no more than three to five PowerPoint slides) that could be presented to the landlord on proposed lease terms that would help RSI accomplish its objectives. Be sure to include a listing of the advantages of this arrangement for the landlord and for RSI.

See Connect for Manager’s Challenge sample answers.