How Do You Know is A Commercial Property is Right For Your Business?
Finding the ideal commercial property can have a big impact on the the success of your business. Here are some tips that will come in handy when choosing the best commercial property for your business.
Location. Location. Location.
The oldest but largest adage when it comes to real estate of ANY kind. Choose a location that suits your budget, clients, and employees if you want the business to be successful.
If you are trying to save on costs but require a lot of space, a remote location may not be the solution. The rent will be more affordable, but a remote location will pull you far from your suppliers and customers. We advise our clients to consider the availability of qualified employees when considering the location of their business.
Adapt your selection to the needs of your business.
Where you need to be is dependent on what kind of company you have. For personal, professional or creative services, you may require a series of closed offices in pleasant surroundings with high-speed networking and easy access to public transit.
For those in retail, make sure there’s ample parking, high pedestrian traffic, and attractive decor. Situating your business close to a magnet or “anchor” store can provide you with lots of walk-by customers. High end clothiers, for example, should avoid discount malls. Instead, locate such a business close to other high-end retailers such as shoe stores or jewelers.
Is the space the right fit?
Upon discovering a suitable building and location, consider what it will take to make it just right. Make sure the space you are considering works for what you do. Most business offices have a ratio of workshop-to-office space that the previous owners have already established.
Look for places that may have already been outfitted with wiring to meet your electrical or communication needs to avoid the added expense of retrofitting. If you are operating a manufacturing or distribution business, take the loading docks into consideration. Ask yourself: Are they well situated? Do they require repair? How many are installed at the facility?
However, if you do not like the current layout, you can always request renovations. When renting premises that require modification, you’ll have to negotiate with the owner. Obtain a contract specifying what needs to be done. Outline clear deadlines and penalties for not completing the work on time. These provisions need to be written into your lease.
Initial and operational costs. Does it add up for you?
You may have a budget in mind before looking at commercial property for your business. Have you taken all option into consideration with your budget? Are you interested in renting an existing space? Do you prefer to buy a lot and have control over construction and design? Are you open to leasing if your structure can be built to suit?
Location can definitely affect your expenses and overhead, but you may have more flexibility than you recognize. Larger buildings and complexes almost always have shared spaces, lobbies, hallways, parking lots, bathrooms, etc. Determine whether or not the landlord is charging you for use of this space. Is it part of the rent or is there a separate fee? How are common areas factored into the rent and will your own lease fluctuate as other tenants come and go?
Make sure that you also consider the security, water, and electricity costs when looking at a lease. A building that uses LED lighting instead of floodlights will end up saving you thousands of dollars. Ensure that the operational costs are laid out clearly, before you agree to sign the lease.
Before agreeing to rent any space, make sure that its rate is no higher than the current market rate. When you start shopping around for premises, find out what the industry standard rate per square foot is. For this reason, it is a good idea to visit several commercial properties before making your choice.
Whichever approach you take, be prepared to act if you find something you like. Commercial space in the Northeast that is worth it’s weight, will not stay available for long. Fortunately, with Condyne Capital, LLC and affiliates, we have access to several industrial, warehouse, retail, office, and flex space properties. Contact us or call 781.552.4200 today to learn more.