What to consider when picking commercial space for your business
Are you opening a new business or expanding into a larger office space? While the perfect property can largely contribute to the overall success of your business, it can be overwhelming and time consuming to move into a brick-and-mortar location.
When choosing a commercial property for your business, it is important to first narrow down your choices by determining what area of town works best for the business. Secondly, establish a realistic budget. Third, understand what your space requirements look like (how many offices, conference rooms, break areas, reception areas, open areas for cubicles are needed to operate the business). Finally, understand what your parking needs are and have a budget ready. Having a rough plan in place will make the process of searching for new location much more efficient and enjoyable.
Here are a few things to consider when choosing the right commercial property for your business:
While it might seem like a dream come true to find a space that is under budget and twice as large as you need, remember that location is the most important factor in real estate.
Whether it’s a retail business or an office space, think about the walkability of the neighborhood, nearby parking availability and accessibility for those with disabilities. Is it important to be close to your clients? Remember, you need to choose an area that not only creates a culture but also suits your budget and is easy for your customers and employees to access.
Although you first have to determine whether the rate per square foot is fair and something you can afford, you also need to factor in overall operational costs. Consider the added expenses of security, gas, electricity, parking, outdoor lighting, water and more. Typically, the bigger the space, the higher the operational costs.
Don’t sign a lease until you get a comprehensive overview of what your new total costs will be with the space. If the costs are too high, your rent will begin eating into your capital and be costly for your business in the long run.
Size and appearance
Make sure to pick a space that will accommodate future growth for your business. If you jump into a property that is too big, you will ultimately be wasting money on the empty space. Alternatively, going into a place that is just the right size and doesn’t allow for any wiggle room or growth can also be detrimental. If you find a property that hits all of the marks but is still a bit too big, consider renting out some of the empty space for the time being.
Also consider what types of spaces you will need in order to support your business. Will you need to install a room for technology servers or back-of-shop office space for managers? Keep this in mind when evaluating the overall layout.
If you are leasing the space, make sure you have a real estate professional on your side who can accurately explain all of the details and help you understand what is and is not a market deal.
Be sure to ask these important questions:
- What is the closing time?
- What building maintenance will we be responsible for?
- What are the total liabilities?
- Are we allowed to sublease to other tenants if we need to relocate?
Relocating, expanding, or opening a new business is not something that should be done on a whim. When looking into commercial property, hire a professional real estate adviser to look out for your best interests. They will help you filter through and understand the market research and analyze your options.
Finding the perfect space takes time, but if you take the above into consideration, you will be one step closer to making a successful move for your business and have fun while doing it.