When choosing commercial space it can be confusing if you have never done it before. Many people think they know what they are doing but they let their residential sales in the past influence their decisions. There are major key differences that need to be key factors in your decision-making process.

Location

Whether it be commercial or residential space one thing that is always true is the proper location is most desirable and in commercial real estate we often use the terms highest and best use. So unlike in residential where everyone wants waterfront or a great view in commercial we need the best location for what we do. This may mean a corner where we have high traffic all the way down to empty space where we can cheaply warehouse products. Understanding your business needs and desires and how to choose a location. We would highly recommend hiring a professional like one of our Move Mentors to help you make an educated decision.

Price

In commercial real estate nothing is cut and dry when it comes to cost on both the rental and the purchase side. The biggest thing to consider here is what are the fixed costs and what are the flexible costs. Depending on the type of deal you make there can be a whole variety of flexible costs. Running a business, it is crucial to know your budget so before you jump make sure you know what you money is buying you.

Use

In residential real estate most often, we know if a home exists someone can live there, and we can rely on residential zoning maps to figure out the towns stance on that. In commercial space you need to be a lot more careful before making a move. There are a lot of variables in business that should be discussed with the town to ensure your business processes fall within the zoning laws, town bylaws, and building codes. This can save you a serious headache when you find out in order to operate as a business in the space you have in mind that you need to do some major upfitting or retrofitting of your location. This is a place where working with a professional can really make all the difference.

Lifestyle

Just a short time back in history businesses mostly only thought of themselves and what they needed to operate. As the world continues to move faster and faster employers have noticed the need to find new ways to increase the desire of prospects to seek out employment opportunities. One major way employers in the new world are attracting new help is to put a little more thought and energy into choosing a location that has some added benefits. It may be something as simple as a great view or as complex as locating yourself near where the desirable candidates live so they have less of a commute. Learning to choose the right place to build the core culture of a company can be the difference between thriving or just surviving.

Parking

Parking is something often overlooked until the business starts operating at capacity. During the early stages of the business it is slower, and people are willing to accept changes but as time goes on light hiccups can lead to major issues. Make sure when looking at a location you think about how both your employees and clients will get to your location. If the answers is by car, you need to think about whether you need to own spaces or there is local and ample parking for those people. Limiting your business flow by parking can be a fatal flaw in two ways. First the clients will not show up because they can not park and just go to a competitor with ample parking. Secondly employees will get frustrated when their daily commute is disrupted on the regular and they need to hunt for parking.

Overall choosing your location in commercial real estate is one of the most important decisions of your business career. Make sure to study a lot, think deeply, and utilize professionals to help. If you are thinking of getting a new location or a first location, please reach out to us and we will align you with one of our Move Mentors. If you enjoyed this blog, please come back for more weekly or take a look at some of our past issues.

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