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Important Factors to Consider When Choosing Commercial Property

Written by Posted On Thursday, 30 November 2017 20:50

You're looking for a commercial property, and that's a pretty big deal. In fact, as a business owner or operator, it could be one of the most important decisions you make: it could make or break your business. It's not the same as buying a home. The list of considerations are often quite different. You don't usually pick a commercial property because it is close to home, but would pick a home property because it's close to work. Your primary consideration with the location of a commercial property, after all, should be that it is close or convenient for your customers.

So what else should you consider when selecting a commercial property? Admittedly, there are dozens of tiny considerations, but only a handful of really big ones. Read on to find out where you should hone your energy.

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1) Location Considerations

We’ve already talked about how your business should be conveniently accessible to your clients, but it should also be accessible to your employees. If you have a startup, for instance, that will be hiring mostly people who are just beginning their foray into the world of work, then you wouldn’t want to pick a property that was off the beaten path. Chances are, recent graduates aren’t going to have their own vehicles yet, so a property close to public transit would be more ideal.

The obvious downside to seeking out a property in a more built-up area is that it is likely going to cost more, but this is the price of doing business, and it is something that is going to be worth it in the long-run. Realistically assess your needs, your budget and expenses so you can make a realistic, smart choice.

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2) Lease or Buy?

This is a big question, and one with weighty implications. There is no one sure-fire answer, but in general, if you are a newer business, it’s better to lease — and lease short-term. Longer leases can tie you to property you could outgrow in a couple of years, so until you get a better handle on how your business will be received, a year long lease is often your best bet.

However, if you’ve been in business awhile and know the ebbs and flow of your industry, then it could be far more cost-effective to buy a property. Especially if you are planning to stay there awhile, and especially if you are in an urban area where leasing prices are insanely high.

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3) Go with Pros

Any professional service is going to cost you, but when it comes to deciding on an investment as huge as a commercial property, sometimes it’s just better to pay a pro, and save yourself a ton of hassle — and money — now and in the future. T

These experts will help you understand what you’re getting with your property, as well as what you’re not. They will also help you negotiate better terms so you can get exactly (or close to exactly) what you need. In the end, they will save you money. You won’t be stuck paying into a lease that no longer suits your needs and is hurting business. You won’t find out too late you can’t sublease, or that there are unpredictable signage regulations in your part of town. These people know the area, and they know the business.

Word to the wise: don’t just take on any real estate or leasing agent. Pick one that is familiar with your area, and has a history in the industry. If you’re looking in Sydney and surrounding area, for example, you wouldn’t go with Toronto-based leasing company Concordian, but you would be well-advised to go with Ray White Commercial Office Leasing. Admittedly, this is an extreme example, but the point is to stay close to home, and cosy up with a trusted pro. You’ll be in good hands, and your decision will be made infinitely easier and ultimately more affordable.

Happy hunting!

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