How to Choose the Right Property for Your Business
Just as you would exercise great caution when buying a home, you also need to be extra careful when planning to buy or rent commercial real estate. How do you go about it? What factors should you consider?
Here are some guidelines that can help you make your decision:
Buy or Rent
This is a crucial question you need to consider at the outset, when you’re trying to decide on a shop or office space. Obviously the option to buy is only available if you have the budget for it. However, you would have the freedom to manage and set up the building as you would like. You can also realize profits in the future when you sell it off, while in the present you can garner a revenue stream by renting out some of the space.
But just because you can afford it doesn’t mean that renting isn’t a viable option for those with a larger budget. The lower initial cost frees your capital for your other business needs such as for marketing and for payroll. Renting space also allows you to relocate more freely when the time comes.
Location is one factor that many real estate agents harp on (“location, location, location”), and in truth it really is crucial. If you’re running a shop in which you expect customers to come, it should be in a place where your customers are likely to be. You should consider other shops in the area (which may attract the same customers you’re going for), the parking possibilities, the delivery restrictions, and the current rental rates.
For office space, you have greater leeway in terms of location. However, your location may also add prestige to your brand. You may also want to be near any potential clients or partners.
The character of the neighborhood also defines your brand. You may want a conservative business (like a bank or a law firm) to be in a more traditional or even prestigious part of town. A more creative brand may feel more at home in an artsy neighborhood full of other creative types.
Obviously the size of the property should be large enough for your needs. You need to consider the size of your workforce and equipment. A larger size also means greater costs for rental or purchase, so you need to make sure that it’s as large as it only needs to be. However, you may want to consider something bigger if you foresee growth for your operations in the near future.
You can’t just buy any old place and call it your office. You have to make sure that your shop or office complies with various legal regulations. You have building, fire, health and safety regulations to consider.
It is best if the property is already designed and built to comply with various laws and regulations. You need to make sure that you offer safe working conditions, while your place is accessible for those with disabilities.
Do you want a more open layout, or would you rather have plenty of separate rooms? If you’re undecided, you may want to go with an open layout in the meantime. It’s easier to convert such as space with plenty of set up cubicles for your employees.
However, if you already picked a property with many small rooms, then it would be much more difficult to transform it into a large open space.
With these factors on mind, you should be able to narrow down your options for a great deal.