How to Choose a Commercial Property Location
When trying to choose commercial property to set up your business, one of the key factors during the decision-making process will definitely be the location. Poor choice of location can be fatal to your business in terms of accessibility to clientele, exposure and the ability to provide the best product/service you offer.
Before you spend the big bucks, you should already have a clear picture of what you want and need in your commercial space. Xynergy Commercial has compiled some of the things that will help narrow down your potential business location.
Type of Business
Which industry does your business operate in? The type of business you run will determine the kind of space you need. For instance, industries such as retail and restaurant will need a location with high foot traffic. You don’t want to be tucked away in a corner where people are likely to bypass you.
On the flip side, office or warehouse businesses will most likely prioritize the proximity with suppliers, clients, or their business network, not necessarily their visibility to the customer.
Businesses that don’t require a lot of space and confidentiality can always opt for renting a co-working space for a cheaper option. Ultimately, the most important thing is to have a plan in place and be clear about your goals. Planning and researching how you can market your business will allow you to stay ahead of the game.
Be realistic when you set your budget. What are your goals with this commercial property? Are you planning on buying or leasing it? No matter the decision you make, your budget also determines the location you can afford as well.
Rigid forecasts and budgets aren’t beneficial. When renting a commercial space, do a thorough check and find out if there are any hidden costs you might have missed. Don’t force yourself to buy that central city location and try to keep an open mind. The position is crucial, but your business’ survival is of higher importance.
If you think that investing in an expensive location will bring you a positive return on income (ROI), then it might be worth the risk. Try to build a flexible budget, so you have room to wiggle.
If you want more information, read through our article on the pros and cons of leasing and buying a commercial space.
Depending on the nature of your business, the size you need for your commercial space may vary. In addition, the number of employees that need to be physically present also play a huge factor. Some companies may have a larger number of employees but they outsource them from overseas, hence requiring less space for their office.
An open-plan space would suit better for businesses like retail and restaurants. However, using an open space has been an ongoing trend for offices as well as it promotes better communication, collaboration, and overall improve the team environment.
On the other hand, if you opt for the traditional route of offices, you might need to consider a space for meetings, waiting room for guests, receptionist desk, staff resting area, etc. It all depends on your style of operation and how open you want the place to be.
Competitors and other businesses
There are several benefits to being close to your competitors and other businesses. Shops and service providers will enrich the quality of your company as a workplace. Not only that, the customer traffic generated by those established businesses could potentially be your next client.
With that said, the benefit applies the same to your business competitors. Not only your business will be visible to their clients, but you’re also able to get insight on how they market themselves and current offers.
“Quite simply, the best place to be is as close to your biggest competitor as you can be,” says Greg Kahn, founder and CEO of Kahn Research Group. Even with the benefits, being the sole provider of the product/service you offer often provides a competitive advantage especially if you have a great client base and experience.
Think about how accessible the transport will be for everyone who’ll be using its employees, customers, etc. If you’re on a busy street, how easy is it for cars to get parking? Is it accessible to people with disabilities?
What sort of deliveries are you likely to receive, and will your suppliers be able to quickly and efficiently get the deliveries to your business?. Depending on the type of business, easy access to transportation can determine the flow of your business operation.
Be up to date with the law! There are a few legal considerations you have to take into account when choosing a commercial space. For instance, health and safety regulations, licenses, insurances, planning permission, and many more. Depending on if you are buying or leasing the space, there are different requirements and different legal documentation you need to check. Double-check with your solicitor before you jump the gun and purchase or rent the space.
Make it easier for yourself and create a shortlist of your favored area. The next step is to consult with our local commercial property agents, and they will help you find your best-suited space. Don’t forget to stay in your budget; the business location is essential, but there are other things you can invest your money in, such as marketing and hiring the best people to grow your business.
Featured photo by: Razvan Chisu, Unsplash.com