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If you own a business and need to find a new location, one of the first things to do is research commercial property listings. A commercial listing can help you connect with landlords or property owners who may be willing to lease to your business if you’re not ready to purchase. Once you find some options, consider the following things to make the best decision for your business.
Availability/Purpose
Availability of space within your price range is important, as well as the location of the space. If you can’t get into the office space in an area you want due to it being too expensive or already leased; this could make it harder for your company to grow and expand. Do also be clear about what the property will be used for. Are you planning to lease out a part of the space to other businesses or individuals? If this is the case, you could set up a structure to make this easier and more profitable.
Size
Depending on what type of business you have and how much money you can spend per square foot, you might want to consider hiring a commercial realtor. To find the best possible deal, your Commercial Real Estate agent should be well-versed in negotiating business leases and understand your budget.
Condition
How you expect the building and property to look is a factor as well as how it currently looks. The condition of a building can impact both your employee’s and customers’ moods or feelings towards your business. For example, if you have an important client meeting, being in bad shape could cost you that client’s business, which would mean money down the drain.
Budget
How much money can be spent on rent per month depends on what type of business it is. For example, if I have a toy store, I’m not going to pay the same rent as if I had a law firm.
Lease Term
This term will determine how many years your business signs up for on the lease agreement. The fewer years you commit yourself to; generally, the less expensive the monthly payments are. This is because, typically, landlords want a long-term commitment from their tenants to make a profit from them over time. Since commercial properties can be very expensive, most commercial leases are 7+ years long and can even go up to 15 or 20 years, depending on the situation at hand. Some property owners try LeaseAccelerator or other supportive software to help integrate real estate lease administration and compliance.
Future Plans
If your company is growing, what are the plans for the business? Do you want to stay in that location, or do you plan on moving? Is it a possibility down the road to expand into multiple locations across the country/world? All of this should be taken into consideration before finalizing an agreement.
Tenant vs. Landlord Relationship
Having a good relationship with your landlord can make dealing with issues far less stressful. For example, if your A/C goes out during one of the hottest days in summer, they might work something out with you, so neither party loses out. You may even consider getting your A/C repaired long before it breaks. That way, when it does break, you have enough time to get it fixed right and not worry about your profits.
Reputation
What other businesses in the area have a good reputation? Again, this could be an influence how well your business does, so it might be worth looking into before you sign a lease agreement.
