Finding the right commercial property is a key component of a company’s success. If your business is located too far from your target audience or the property doesn’t meet your needs, your business will have a hard time recovering. It’s best to not rush the search for a commercial property and instead spend time thinking about your needs and budget. When you have a thorough list of your needs and budget, you will be more likely to find the right commercial property for your business.
1. Study where your target audience is located.
One of the key ways to find the right commercial property is to find a property that is ideal for your target audience. Your property needs to be centrally located to your target audience and be easily accessible to them. For example, a children’s clothing area would do better in an area near an elementary school versus in a business district. This is why it is important to know your target audience and think of them before making any decisions because if an aspect of your business (ex. marketing, building location, promotions, etc.) doesn’t appeal to them, your business will suffer.
2. Look at traffic flows and statistics of each location.
When looking at various commercial properties, you need to look at the traffic flows and statistics of each location. Is the road super congested and will be hard to turn in and out of? Does the area have more traffic during the day or at night? (This is especially important in restaurant properties.) Is the area more commercial or residential? Has the neighborhood seen an increase in crime rates? Does the area draw more of a younger or older crowd?
Most importantly, does this commercial property meet the needs of my business? Does it have the square footage my business needs? Does it have the electrical components my company requires? Does it have enough parking to adequately serve my customers? These are the crucial questions you need to ask every time you tour a commercial property.
3. Only look at properties in your budget.
Just like when buying a house or vehicle, you only need to look at properties within your budget. You might only want to “just look” at a commercial property that is out of your budget, but it’s hard to go back to properties under budget when you’ve seen “luxury” properties. Before beginning any property search, you need to determine your maximum amount for rent or monthly mortgage payment, and you should also factor in extra costs like insurance, utilities, and any leasing fees. Especially when a business is starting out, you don’t need to look at luxury properties that you can’t afford, but you should look at commercial properties that meet your company’s needs.
4. Read through the lease agreement thoroughly.
Before signing any lease agreement, you need it to read it through thoroughly, and if you have any questions, you need to ask them. With any changes or clarifications, you should ask for them in writing so everyone is certain of what the lease covers and does not cover. It’s smart to review the lease with a lawyer so you are aware of the legal aspect.
5. Work with a commercial broker.
Working with a commercial broker can make the search for the right commercial property easier for you. The broker will look for properties for you to tour and choose from and can even help negotiate a lease agreement. Just like using a realtor to find a house, working with a commercial broker is ideal if you are short on time or need to take something off of your plate. Before working with a commercial broker, you should ask about their fees so you are informed from the get-go.
When trying to find the right commercial property, you should make sure a property is convenient for your target audience and fits in your budget. Before signing anything, you should thoroughly read through the lease agreement, and it doesn’t hurt to work with a commercial broker to help you find the right location. Finding the right commercial property isn’t hard, and by making a list of your needs and researching different properties, you can easily find one that will fit your company’s needs.