Looking for an ideal commercial space to rent nearby? Check out some options applied to your needs. Start looking today and lock the perfect space!
Imagine Sarah, an entrepreneur with an online business who is finally taking the leap to open her first retail store. Excitement rises in her but then crashing down is the entire façade of getting the right commercial space.
So, where does she even begin? How does she find that space that works for her needs, fits her budget, and is attractive to customers? Business people are way too familiar with these scenarios. The process of getting this property can arguably be quite intricate and surely time-consuming, with a myriad of pitfalls throughout.
This guide is meant to encompass the stepwise matrix of finding the appropriate commercial space for rent in your vicinity in order to build up your confidence and secure the perfect spot for starting your business.
Defining Your Needs
Listing properties comes after your needs have been clearly delineated. This kind of groundwork will benefit you by saving time and giving you insight into costly blunders in the future.
Type of Space: So what kind of business will you do in such a space? Do you envision a modern office space of your own or perhaps a busy retail area, an efficient warehouse, or even a specialized industrial type of facility? Each category has its peculiar characteristics. Retail spaces oftentimes need high visibility and foot traffic, whereas warehouses give importance to accessibility for delivery and storage. Offices need to provide a professional environment, whereas industrial places may require specialized zoning and equipment. Knowing your business type comes first.
Size Requirements: Estimate as accurately as possible the amount of square footage you will actually need. Play the scale from current through immediate future needs. Don't just weigh in current requirements for your inventory or staff; project estimates from a heightened growth pattern in a few years. Overestimating increases costs unnecessarily, while underestimating makes the operation of your business difficult. Take measurements for your current workspace (if such a thing exists); include the space required for certain activities (customer service area, storage, production, etc.). Space calculators available online can also assist in this situation.
Budget: These are just some extra expenses along with the commercial rent. Allow for overheads such as utilities (electricity, water, gas), property taxes (if applicable), maintenance, insurance, and build-out or renovation costs that may arise. Realistically estimate the budget and stick to it. It is also highly useful to know the types of leases that exist and their variations on the costs you are subject to. Triple Net Lease (NNN), usually lower in base rent, is where the tenant pays the property taxes, insurance, and maintenance. Gross Lease incorporates these expenses.
Location:-Never neglect the location. Factors affecting foot traffic (for retail, especially), proximity to target markets, ease of access for customers and employees public transport and parking), visibility, demographics, competition, and zoning are all important.
Analyze competition- are there extremely many similar businesses in proximity? Restrictions: Similar businesses within the area too would not be good. Check local zoning regulations to ensure your business type is permitted in the area.
Amenities: List all the amenities essential or wanted. These will include creating allowances for adequate parking, reliable internet access, and restroom facilities. Loading docks for warehouses, high ceilings, or a type of office layout probably will be desirable amenities. Rank according to your business needs and budget.
Lease Terms: Important is the term of the lease understanding. What is the period for which one could sign the lease? What are tenant improvement, renewal, subleasing, and rental increase provisions? Get the agreement reviewed by a legal practitioner before signing.
Where to Look for Commercial Space
Having gotten the understanding of what you are looking for, it is now the time to go for it.
Virtual Commercial Listings- There are a lot of portals regarding commercial properties. Commonly known, the most popular are LoopNet, CoStar, or Commercial Cafe. They have lots of available properties in their databases. Filter by location, size, type, price, etc. Several local real estate firms also have their websites with listings.
Local Real Estate Agents: Commercial real estate agents aid businesses within the procurement of leased or purchased premises. Their professional set-up gives you a much broader base of listings having some not advertised in the market. They then negotiate lease terms on your behalf and guide you through the process. They charge a commission, but their services are invaluable.
Network: Networking by other business owners and industry professionals can unearth local community groups into the hidden opportunities. Attend local business events, and be a member of relevant organizations. Word-of-mouth referrals are amazing.
Direct Contact with Business Firms: Drive through the areas you want and keep an eye on any sign that reads "for lease." Contact property owners and managers directly. Sometimes, there are better offers when you cut out the middleman (real estate agent) and go direct.
Area Newspapers and Publications: Even though online has taken over the show, local newspapers and business publications have not been a dying resource, especially for smaller, localized assets.
Evaluating Potential Spaces
When this is done, what follows is dispassionate evaluation of the potential spaces.
Site Visits: Schedule visits to sites where the properties in question would be toured physically. Bring along a checklist to ensure everything most critical is covered. Check on the conditions in the building vis-a-vis the layout, amenities offered, and surrounding environment. Make inquiries regarding utilities, maintenance, and lease terms.
Due Diligence: Look into structural charging and hazards of the property before any commitment is made. Thoroughly review the lease agreement and speak with a legal expert. Check to see if local zoning laws allow you to do what you intend with the business.
Negotiating the Lease: Learn the essentials about negotiations of the lease terms. Do not shy away from negotiating such provisions as rent, lease duration, tenant improvements, and miscellaneous clauses. During these phases, a commercial real estate agent can become your best friend.
Finalizing the Lease: After the agreement has been made, read all the paper documents carefully before execution. Make sure you know all the terms and conditions. If required, get a legal opinion.
Preparing for Occupancy: After your signing of the lease, prepare for occupancy. Arrange utility connections, secure necessary permits, and schedule any renovation work or build-out. Revise your schedule concerning moving and ensure a smooth transition.
Conclusion
Finding a good commercial space requires careful planning, research, and negotiations. By following the above guide, you stand a far better chance of securing a place that fits your business needs and puts you on the road to success. Start your search today, and do not hesitate to consult local real estate experts in your area. Your perfect commercial space is out there; you just need to find it!
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