Finding the right commercial property is one of the biggest decisions a small business owner is going to make about the future of the company. The right property can help your business grow, improve your day-to-day operations, strengthen customer appeal, and become one of the most valuable assets of the business. On the other hand, choosing wrong can lead to their costs, operational problems, and limited room to grow. Here, we’re going to look at some of the most major considerations you need to make when choosing your next property, and how they can affect your business in the long term, not just immediately.
Ownership Vs Leasing
Whether you buy or rent a property (or even build one) can have a huge impact on how you’re able to use your building over time. The choice depends a lot on your finances, your plans to grow in place (or move in the future), how much risk you’re willing to tolerate, and more. Leasing usually requires less upfront capital and may offer more flexibility if your business is still changing. Ownership can build equity, provide more control, and protect you from rent increases, but it also brings responsibilities such as maintenance, financing, insurance, taxes, and repairs. Building new offers the most customization, but it can take longer and involve more complexity. Compare not just the costs, but the opportunities or limitations of each option before making up your mind.
Location And Access
Location is one of the key defining strengths of any given property. You need to choose a location that matches the needs and operations of the business. For instance, if it’s a retail business aiming to attract customers, then you need a space with good visibility, signage potential, and easy access from roads or walking routes. On the other hand, a contractor, distributor, or service business might need to be more concerned with highway access, delivery routes, and how easy it is for suppliers to reach them. Commuting staff members always need to be a concern, as well, of course.
Parking And Site Circulation
Related to accessibility to your property, you also have to consider how your employees, visitors, customers, deliveries, and service vehicles are able to find their spot on your property when they arrive. Take the time to think about how many parking spaces you need, depending on the type of business, peak hour expectations, staffing levels, and even the local code requirements. A property with limited parking may create congestion, reduce customer convenience, or cause conflict with neighbouring businesses. How easily they’re able to circulate the site matters, too, as vehicles should be able to enter, park, turn around, and get out safely and without hassle. Don’t forget the need to set space for pedestrian routes, as well.
Loading Access And Operational Needs
Meeting the daily operational needs of the business is, naturally, one of the most important parts of keeping a business running. Depending on the nature of the business, you need to consider how your space is going to allow you to receive products, move equipment, store inventory, and allow for vehicle operation. As such, you might need to allocate room for loading bays, operational doors, dock access, and more. The suitability of these spaces matters a lot, as well, which can include accounting for things like floor strength, visible lighting, and more. Think about how goods will move from delivery trucks to storage, production, or sales areas. The smoother the flow is, the more time and labor you’re going to end up saving.
Room For Growth
Your business property might fit your needs as soon as you move into it, but is it going to meet your needs two years from now? Five? Eight? If your business is growing, then you might find yourself needing more space for workstations, equipment, furniture, inventory, and supplies. As such, you have to consider how much expansion the site allows, and whether you have the floor layout, storage capacity, or even height to grow your business as you would like. Options like warehouse condos are popular for businesses that are anticipating growth and need a decent footprint without having to shell out for a full-scale industrial facility, for instance. There are options to suit your growth needs, whatever they might be.
Fit-Out And Improvement Costs
If you’re building your own commercial property, then you should make sure to include the fit-out as part of your budget. However, when you’re leasing or buying a property, you might need to consider how much work it’s going to need to fully meet your requirements, whether you’re designing new office space within, changing out the flooring, improving the lighting, investing in new HVAC, or otherwise. Even a property that might be highly affordable to begin with can quickly become expensive as you discover more and more updates and upgrades that you want to make. As such, make sure that you fully plot out how you’re going to make a property fit your needs so you can determine the budget necessary, as well as how long it might take you to actually move in.
Zoning, Permits, And Use Restrictions
How you’re able to use a given commercial building might largely depend on zoning rules, deed restrictions, building permits, codes, environmental regulations, and occupancy classifications. A property may be listed as commercial, but that does not mean it is approved for your specific use. Automotive work, food service, manufacturing, storage, outdoor equipment yards, customer showrooms, and office use can each have wildly different requirements. Make sure that you know how you’re able to use a building before you move into it and, if you’re building your own, work with contractors who can handle the red tape for you and bring up any potential issues regarding the site you’re choosing to build on.
There’s a lot of planning that needs to go into choosing the right commercial property, so take the time to really think about your needs, not just now, but in the business’s future, as well. It’s not a decision that should be rushed, by any means.
