When searching for commercial real estate properties for your business, rent and mortgage prices may end up being the most expensive part of your budget. However, that is not the only factor to consider when choosing a location for your new office. Read our three key factors when searching for commercial real estate.
- Should I Own or Lease?
Whether to own or lease an office space is a decision that will be different for all companies. There are a number of factors to consider when deciding to rent or lease, such as, “Do I have enough capital to own this real estate?” Or “Do I want to be in charge of the upkeep of this property?” Each company should give a dedicated look at their company and decide if it is in their best interest to own or lease a company based on their companies financial and capability.
- Location, Location, Location
When deciding where to hold your business, again, the business must rank their priorities. Does the business travel to their customers often? If so they would want commercial real estate that is in a geographical position that is near most of their customers. For example, if you think of a company that provides IT support for local businesses, they would want to be in an area that allows them to travel quickly to these businesses.
Does the business owner want to have an easy commute to his or her office? Than make sure it is in an area where they can travel to and from the office in a timely manner. This likely applies to sole proprietors, since they are the only ones part of the business, and they are tired of operating out of their basement, they will most likely want an office space close to their home.
And lastly, the strategic position of a business may be the make or break their sales. For example, if they are a restaurant or coffee shop, they want to be in an area that is going to attract the highest number of their target audience.
- Cost Effective Decisions
Lastly, there will be a number of questions that you will need to consider when finally choosing your property. And the main question is, what do I have to pay for? There are factors such as maintenance costs that will need to be considered when picking an office space. Also, do you know the difference between a gross lease, a modified gross lease and a net or triple net lease? Or how a base year lease is administered? Sometimes it is important to look over the conditions of an old lease instead of simply renewing them, this may save you from paying higher costs than necessary. Lastly, be sure to consider the length of your lease. While the future is sometimes uncertain, it may be more cost effective to sign a longer deal to bring down the price of your newly chosen real estate.