Top 7 Tips Before Selecting a Commercial Space
Choosing a commercial space for your new store or business is a big step. Your decisions will impact you personally, so considering that fact, every choice is detrimental to the success of the business. Here are the Top 7 Tips Before Selecting a Commercial Space.
Even though this is your business, the happiness of your clients determines your overall success. Whether you’re selling shoes, or performing accounting skills, your space should be comfortable for returning clients, and welcoming to new ones.
Brightstar Tip* – Most commercial leases are expected to come with a build-out allowance: Ask the seller for funds towards improving their space or a few months of free rent while you get acclimated.
So, you’ve found a location that you can see your business fitting into; now what? Location is not just the address, but the community the surrounds you. The parks, the parking, the people: Everything becomes a factor towards the success of your business.
Brightstar Tip* – Complimentary businesses, traffic and parking are the biggest impacts on retail businesses. Do your homework.
Is this location that you’re considering heavy on street traffic? What about foot traffic? If the street traffic is hectic, make sure parking is readily available for your customers. Many people get frustrated because of parking difficulties, and likely opt for a competitor. However, if your business is in a ‘Pedestrian Town’, gorilla marketing will certainly keep the people coming.
Brightstar Tip* – Don’t forget about deliveries and your ability to host large vehicles. A traffic summons is never a good way to start!
Competitors are everywhere. When there’s a Dunkin’ Donuts on one side of the street, there’s most likely a Starbucks on the other side. If your business is smaller and you’re just establishing your brand, it’s best to find an area where popular competitors aren’t as local.
You obviously know the current size of your business, but will that size fluctuate in the coming years? You have to consider if your business has the opportunity for growth, or the possibility to shrink. For example, if you’ve just started a tech startup company and you have 10 employees, in time you will likely need more employees and more space.
Brightstar Tip* – Don’t sign your life away. Sometimes the best decision in indecision; try the space for a trial period (2-5 years) and extend if successful.
6. Rent vs. Purchase?
Deciding whether you’re going to rent or buy is the ultimate decision. Do you think you’ll want to stay there forever, or is this just a stepping stone to something better? If you’re unsure of your future plans, renting is most likely the choice you’ll make. However, if this will be the foreseeable home to your business, the mortgage rates are low and the market is weak, purchasing might be the better fiscal decision.
Brightstar Tip* – There is no right answer here. Each situation/business/location is different in every case, so you should consult a local professional before making a final decision.
Before making the decision on an office or store space, create a budget. You should look for a space that allows your business to function without breaking the bank. You will need to make sacrifices, so understand that success takes time. Make sure to overestimate rent (or mortgage) increases, utilities, technology or any type of cost that pertains to your day-to-day operations. Once you have a completed budget, you’ll know where your business can comfortably thrive.
Brightstar Tip*- Aim low and you’ll never miss high.
Consider these seven variables before making the biggest decision of your business’ life. This is the space where your business has the potential to grow, thrive, and make an impact on the neighborhood (and your livelihood). If you’re unsure about the right area for your target audience, or need assistance in finding a suitable storefront, Brightstar Realty is here for you. Our trusted realtors Brandon Zaleski and Eric Whitman will match you with your perfect space.