If you’re scouting for commercial property for your business, you need to consider a number of different factors during your search. It’s not enough to look for a space with plenty of parking or ample foot traffic, because there are other aspects that are just as if not more important to the success of your business. With that in mind, we want to showcase three mistakes business owners commonly make when looking for their newest commercial space.
Don’t Overlook These Aspects Of Commercial Property
Even if you have a great business idea and a fantastic staff or team of investors behind you, your idea can fail simply because of a mistake made during the property acquisition phase. Let’s look at some issues that may be overlooked so that you can ensure none of these issues cause you strife when scouting for your next commercial space.
Overlooking Land Use And Zoning Restrictions
A property may look perfect on the surface, but you’ll need to take a closer look at the land use and zoning restrictions. If the land is not zoned in a way that aligns with your intended use, it could cause problems and financial headaches as you work to clear some bureaucratic red tape. Have your real estate agent or another professional like a title service team research the property and confirm that the land use and zoning restrictions set by the local municipality align with your vision for the property.
Infrastructure And Improvement Costs
Really make sure that the space has the right infrastructure in place to help your business succeed. Is there enough parking space? Do you have reliable access to necessary utilities like water, sewer, electricity and internet? Is the space big enough in the event you wish to expand? How easy will it be for you to receive deliveries? No two spaces are identical, so try to envision how day to day operations would look if that ends up being your commercial space? It may also be helpful to ask other tenants or neighboring businesses if they have any concerns with their space. Most businesses will be more than happy to help other unrelated businesses succeed so that there is more traffic in the area, so be willing to listen to what other business owners have to say about the area. Finally, consider what you’ll need to spend in order to update the space or add accommodations like restrooms or wheelchair access.
Commercial Lease Terms
If you believe you’ve found a space you’d like to lease, make sure you carefully review the lease terms associated with the space. Review to see how you will be expected to pay for things like:
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Standard maintenance
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Taxes
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Insurance
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Rent
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Early lease termination
If you assume that the property owner will handle certain expenses, only to later find out that you have partial or full responsibility for these fees, it can greatly cripple your finances and the success of your business as a whole. If the spot is perfect, but the lease terms are less than desirable, work to negotiate new terms or walk away from the deal.
There are plenty of factors that need to be considered when searching for a new commercial location, and don’t overlook an issue that could end up costing your business. And as always, if you need help finding commercial space or buying a property outright, reach out to the team at Commercial Partners today at (612) 337-2470.