As your company grows, you may need more space for operations, inventory, or additional employees. Purchasing commercial real estate can take your business to the next level. However, choosing the right property is an important decision that requires careful consideration. Read on to discover some tips to help you select commercial real estate that fits your business needs.
1. Analyze Transportation and Logistics
Convenience and accessibility are important factors. Consider road and highway access, proximity to your customer base and supply chain partners, and public transportation options, if applicable.
If you receive bulk deliveries, ensure adequate loading docks and truck circulation space. Parking needs to be available for employees and customers, and delivery vehicles should also be accommodated.
2. Research Zoning and Permitting Regulations
Check that the intended property use is allowed under current zoning codes. Some locations only permit certain types of commercial activity like manufacturing, retail, or office space. Confirm you can operate the intended business from a particular property. Also, research any permits, licenses, or inspections required.
3. Lease Terms and Conditions
When reviewing lease terms and conditions for commercial real estate, it’s important to consider:
- Lease duration: Determine if a short-term or long-term lease better suits your business needs. Short-term offers flexibility, while long-term provides stability.
- Rent increases: Understand how increased rent is calculated and the frequency of increases. Correctly accounting for potential hikes aids in accurate budget forecasting.
- Maintenance responsibilities: Identify whether the landlord or tenant handles repairs, upkeep, and building maintenance costs. Clarifying responsibilities allows for budgeting appropriate funds for maintenance expenses.
4. Determine Space Requirements
Carefully assess your business’s current and projected space requirements. Consider the size of your workforce, amount and type of inventory, warehouse and production space needs, parking requirements, and room for potential expansion. Walk through your daily operations to get an accurate sense of the square footage required.
5. Area Demographics and Visibility
Look at median incomes, education levels, age demographics, and other characteristics that provide insight into the local spending power and consumer demand near potential locations. Staying among your target market boosts visibility and accessibility. Demographic research prevents a mismatch with your target customer profile.
Similarly, opt for high-traffic locations on busy streets or in commercial hubs. This enhances brand awareness and allows easy access for walk-in customers. Busy areas attract more potential clients compared to low-footfall locations with poorer visibility.
6. Evaluate Safety, Security, and Appearance
Visit potential properties during evenings and weekends to experience traffic flows, lighting, and ambient noise levels. Inspect security features like locks, alarms, fencing, and lighting for employee and inventory protection needs. Appearance matters, so consider curb appeal, signage options, and whether the location projects a professional image for your brand.
7. Research Your Landlord
When renting a new place, it’s wise to do your homework on the landlord and property manager beforehand. Spend some time online looking them up and talking to current tenants to get a feel for what they’re like. The best landlords make themselves available if anything comes up, get back to you promptly, and are always respectful when dealing with issues.
Endnote
Carefully evaluating these factors will help you select commercial real estate that supports your current and future business goals. Take time to thoroughly research your options before making a decision. Considering the location, space needs, lease terms, landlord reputation, and other practical concerns will set your business up for long-term success.
The post How to Choose the Right Commercial Real Estate for Your Growing Business appeared first on Our Business Ladder.