If you’re looking for a building to start your business, you’ve come to the right place. In this guide, we will walk you through the process of finding and securing the perfect property for your needs. It can be a daunting task, but with the right information and tools at your disposal, it can be a lot easier than you think! Let’s get started.
Getting help from a commercial real estate broker or agent is the best way to find a commercial property. Commercial real estate agents only rent and sell office, retail, and industrial property.
Key Takeaways
- Business owners should have a plan for their business before they decide where to locate it.
- They should choose a location that fits their needs and allows them to thrive.
- They should also consider the costs of the building, as well as the future growth potential for their business.
Table of Contents
Finding the Right Building for Your Business: Factors to Consider
When you’re looking to open a business, there are a lot of factors to consider. Not just the location—which is important, but also the size, amenities, and feel of the space. What kind of office furniture do you need? Is it possible to work from home? Will your employees be able to collaborate with each other in one place or will they need separate rooms?
This guide will help you answer all those questions so that when you find the perfect building for your business, it will be exactly what you want.
Assess your needs
When you’re looking for a building to lease, it’s vital to assess your needs before you start shopping. Here are some things to look out for:
Size
If you’re looking to find a building for your business, the first thing to do is assess your needs. The right kind of building will depend on what kind of business you’re running, and it’s important to figure out exactly what you need before starting your search.
Do you need a retail space? A distribution center? An office? A warehouse? Are there any special considerations for your location? Is there a specific architectural style that would be best suited for your product or service? Do you have specific goals for expansion in the future? These are all things to consider when choosing where to set up a business.
Budget
Budget is another important consideration. Your company could fail if you can’t afford to rent commercial space. Know what you can afford to put down as a monthly rent payment.
Keep in mind that there are additional expenses beyond the lease payment when renting a commercial space. Consider the following additional costs:
- Utilities and Insurance
- Articles of furniture and mechanical gadgetry
- The Cost of Upkeep for Community Facilities
- Alterations to the property’s construction budget
- Signage
- Costs associated with relocating
Know exactly what your monthly lease payment will cover, and what other fees may apply, before you sign the lease.
Buy or Lease the Building
When you’re looking for a building for your business, there are two main options: buying or leasing.
Owning commercial real estate could be great, but that depends on the specifics of the deal. Business properties are typically owned and rented out to tenants. In other instances, however, the owner may be amenable to either a sale or a lease.
In other situations, a lease option may not be available and the property is being offered for sale. Identify the choice(s) with which you feel most at ease. Things to think about when deciding whether renting or buying makes more sense for you.
Having power over the land.
Buying could be the best option if you want to make major improvements to the property or finish a build-out. It’s important to know whether or not your lease allows for modifications before signing anything.
Total expense over time.
Real estate is an investment, but in the early years of a business, leasing space is usually more financially advantageous. Real estate can be used as collateral in times of financial hardship. If money is tight, it’s probably best to rent instead of buy because of the lower monthly cost.
Preventative measures are necessary.
If you don’t want to be responsible for all of the building’s upkeep or aren’t confident in your ability to spot and address expensive maintenance needs, you might be better off renting from a reputable landlord (of course, just like renting a home, you are responsible for an extent of the upkeep).
Effects on one’s taxes.
It’s possible to weigh the pros and cons of leasing versus buying. Consult your accountant to learn more about the tax implications of buying, selling, or leasing a home.
Mobility.
The ability to uproot your operation whenever you see fit can be a huge boon to any business, but especially those in the service industry. It’s also possible that you have long-term plans to improve the space or structure you currently occupy. Leasing is a better financial decision than buying if you need transportation options. The only time this is acceptable is if you are able to afford to lease the space to another person once you’ve relocated your company.
Potential appreciation in a piece of property.
If you live in a region where real estate is increasing in value, buying a place to live rather than renting could be a good financial move. Be wary of getting a “good deal” if you’re in a declining property value area, as you may end up having to sell the property at a loss.
Type of Lease
There is a wide variety of commercial leases, each of which can be somewhat complicated and challenging to comprehend. Take your time before signing anything because being aware of the benefits and drawbacks of each option will be of tremendous assistance to you when it comes time to negotiate the terms of the agreement you are about to enter into.
Type of Space
Retail business
Retail businesses are places where you can buy products. They are typically open to the public, and they sell a variety of items. Some examples of retail businesses include clothing stores, bookstores, hardware stores, electronics stores, grocery stores, and convenience stores.
Commercial business space
The term “commercial real estate” (CRE) refers to any piece of property that is utilized solely for business-related reasons or to provide a work space as opposed to a living area, which would instead be considered “residential real estate.” Tenants are typically given leases on commercial real estate so that the property can be used for activities that generate income.
Industrial Building
The sizes and styles of industrial buildings vary widely. Factories, stockrooms, data centers, laboratories, research and development centers, flex spaces, and retail outlets are the most common. The characteristics and functions of each variety of industrial structure are distinct.
Buildings that are directly used in the production of electricity, the manufacturing of goods, the mining of raw materials, or the warehousing of textiles, oil products, paper and wood products, chemical products, plastic materials, and metals are considered to be industrial buildings.
Property Floorplans, Layouts, and Amenities
Floor plans and office layouts have an effect on workplace communication and collaboration. If the layout of your office space makes it difficult for workers to communicate and collaborate, you will stifle productivity. Decide on an open floor plan instead of cubicles if your company holds a lot of unscheduled meetings. If, on the other hand, your employees regularly need to have private conversations with clients about sensitive matters like intellectual property, then it makes more sense to provide them with their own offices.
The impression your office gives to clients and workers is often as significant as the space itself. With today’s tight labor market, it’s more important than ever to retain your company’s top talent and create a pleasant work environment for your employees and clients.
Ways to find a business lease space
Here are some ways to find a business lease space:
Use a commercial real estate agent
When you hire a commercial real estate agent, you get someone who’s watching for new properties for you. This saves time so you don’t have to search for new properties constantly. Your agent understands the local market and helps you find properties that fit your needs. They might also hear about new properties before they’re listed, which can help you snag the perfect place.
Network with Business Owners
If you’re looking for a business lease space, it can be a lot of fun to get out and mingle with local business owners. The best way to do this is to attend local events and conferences. You can also reach out to local chambers of commerce and talk with their members about where they lease their space from.
They can also provide you with their landlord or property management company.
Search the Internet
There are several websites that offer listings of commercial real estate. These sites can help you find the type of space you’re looking for, but they aren’t always up-to-date. You may also consider using a commercial real estate search engine like LoopNet or CoStar to find properties in your area.
Drive Around Your Market
Another way to find commercial real estate is to drive around your market and look for any buildings that could be available. When you’re driving, keep an eye out for large empty lots, old office buildings, and warehouses that are still occupied by one tenant but may be able to be broken up into smaller units. If you see a property like this, contact the landlord or building owner to see if they’re planning on leasing out their space.
How To Find A Building For Your Business FAQs
Is location important for a business?
Location is very important for a business. It is important that you choose the best location for your business. Location can be defined as the place where a person or thing is. The location of a building is important as it determines how far it will be from its customers and other businesses. It also determines how much money it will cost to transport goods from one place to another. A good location will have easy access to roads and other transportation systems such as trains, buses, and airplanes.
What is the most common lease for Industrial property?
Triple net leases are a form of commercial lease that makes the tenant responsible for all real estate–related costs associated with property ownership. They are most commonly used in industrial and retail properties where multiple tenants occupy one building.
What does SF yr mean?
The rent per square foot per year is written as $/SF/year or $/SF/yr in the commercial leasing business. Why does this matter? This is because most commercial rental prices are given in terms of dollars per square foot per year.
Conclusion
Whether you’re a startup, a small business, or a seasoned entrepreneur looking to relocate your company, securing a commercial building can be a difficult task. It’s essential to have an understanding of the process in order to make informed decisions on timeframes and costs associated with obtaining a space for your business. In this guide, we’ve provided the ins and outs of the entire building search and purchasing process so that you can make an educated decision about your next move.
Not sure where to start? I offer free consultations to walk you through the process and answer any questions you may have. Give me a call today or schedule an appointment on our website. I’ll be happy to help get you started on finding the perfect building for your business.
