Considerations Before Committing To Commercial Real Estate
Small business owners should be happy when they finally grow to the point of getting their own retail store or office. Finding the right location can make a difference in sales and energy. Consider the following four topics before you contact your commercial real estate broker.
Location is arguably the most important aspect of commercial real estate. In order to pick the best spot, consider your customers and employees. Retail shops that rely on teenage walk-in business will want a shop located near the local teen hangouts or the school. An office site will likely benefit from being near highways, train stations, and other transportation hubs so that employees and clients can get to the office easily. Office buildings also do well when located in an established business district that networking connections will recognize.
Consider the businesses/offices near your new location before signing on the dotted line. Avoid places with too much competition on the same block. Alternatively, pick a location near stores that may benefit you, such as coffee shops, printers, restaurants, and gyms.
Small commercial real estate leads to uncomfortable renters. Large commercial real estate costs a lot of money. As the renter/owner of the property, you need to pick a size that's just right. For new businesses, this can be difficult. Consider finding a small place that offers the opportunity to expand to other offices/retail locations in the building if necessary. For established businesses, prepare for growth. However, you'll also need to consider how many people prefer to work and shop from home these days.
Your employees and visitors should feel a specific aura when walking into your commercial real estate. A neighborhood antique shop should include a classic style complete with neutral colors, natural building materials, gentle lighting, and traditional, ornate decorations and plumbing fixtures. A modern tech company, on the other hand, should use sleek, minimalist designs that include black, white, silver, and bright colors. Building materials will include glass, metal, and plastic.
Before you look at commercial real estate, you need to analyze your finances to determine your budget. When creating your budget, keep in mind that it may take time for business to pick up in your new location. You also have to plan for the unexpected, such as a global pandemic. Stick to your budget, giving yourself plenty of wiggle room. You can reassess once the lease is up.
Contact a local commercial real estate service to learn more.