ta_assign4_210f - Proposal Los Angeles vs New York City...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Proposal Los Angeles vs. New York City When deciding to set up an American branch for Gateau, the cities that were mainly looked at were New York City and Los Angeles. New York City is considered the fashion capital of North America with many up and coming artists and designers based there. On the other hand, Los Angeles is home to many of our clients and is also highly involved in the fashion world as well. If Gateau Couture were to set up the new branch in New York City, there would have limited space to for the new branch. Because New York City is quite congested, there is a lot of difficulty finding large rental spaces. The best solution would be to rent two separate spaces and renovate them to suit our needs. One would be for business and office work, and the other as studio space for creative work. There is no guarantee that the two spaces would be in the same building, or even the same district. There would be a high possibility that the branch would have to split up. Furthermore, there are few options for office and studio expansions if it were needed. Los Angeles is well known in the fashion world and still has room for building developments. There are several buildings in which Gateau can rent one or more floors. This gives the flexibility of keeping all work departments in one area. Another option in Los Angeles is to buy land and build a new branch. As it is not as congested as New York City, it is possible to invest in real estate and construct a building. A custom built office will allow room for creative control over the layout of the building and the options for future expansion. In terms of prices, rent in New York City is about $50-$60 per square foot, compared to Los Angeles where rent is $25-$35 per square foot. That makes renting in New York City double the cost compared to Los Angeles.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
If Gateau were to open a branch office in a rented space, it would be money spent with no return. Purchasing land would count towards an investment and allow Gateau to earn money through rentals and leases. There are two different lots available for purchase within Los Angeles. The first lot is
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 4

ta_assign4_210f - Proposal Los Angeles vs New York City...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online