Top 5 Checklist for Business Owners When Searching For Commercial Real Estate

When a small business is searching for commercial real estate, several crucial factors need to be considered to ensure the chosen location suits their needs and supports their growth. Here are the top five things to consider:

  1. Location, Location, Location: The choice of location is paramount for any small business. Consider factors like visibility, accessibility, and proximity to customers, suppliers, and employees. Is the area easily accessible by public transportation, and is there ample parking for customers and staff? Assess the neighborhood’s safety, demographics, and potential for foot traffic to ensure it aligns with your business’s target market.
  2. Size and Layout: Evaluate the size and layout of the commercial space. Does it provide enough room for your current needs, and does it allow for growth? Consider the layout’s flexibility and whether it can be easily customized or renovated to meet your specific requirements. A well-designed space can enhance productivity and customer experience.
  3. Lease Terms and Costs: Review the lease terms carefully. Assess the lease duration, rent structure (e.g., triple net lease, gross lease), and any additional costs like utilities, maintenance, and property taxes. Small businesses should aim for lease terms that align with their long-term goals and financial capacity. Negotiate terms that provide flexibility in case your business needs change over time.
  4. Zoning and Permits: Ensure that the commercial space is zoned appropriately for your type of business and that it complies with local zoning regulations. Check if any special permits or licenses are required for your operations. Dealing with zoning issues or permit problems can be time-consuming and costly, so it’s crucial to address these upfront.
  5. Future Growth and Expansion: Consider your business’s growth prospects and whether the chosen location can accommodate expansion. It’s wise to have a plan in place for when your business outgrows its current space. This could involve options like renewal clauses, adjacent space availability, or the ability to sublease or terminate the lease if necessary.

In addition to these five factors, it is essential to work with a qualified commercial real estate agent or attorney who specializes in commercial leases. They can help you navigate the complexities of the real estate market, negotiate favorable lease terms, and ensure that you make an informed decision that aligns with your small business’s objectives.  

Where to Start:

I offer free consultations with small business owners to help business owners navigate the process and find a location that suits their needs.  Feel free to schedule a consultation with me by clicking here.

 

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