Most entrepreneurs excel at developing business ideas. The idea stage is often the most exciting part of starting a business. But the situation becomes more stressful when looking for business real estate. It’s smart to take your time and consider several factors before signing a lease. Here are 4 tips for choosing real estate for your business.
1. Pick the Best Location
Your location plays a part in how many and what kind of customers you’ll attract. Location also affects how employees feel about working for your business. It can also determine whether or not you’re able to establish dependable supply chains.
Also, determine if the location is zoned for your type of business. It’s your responsibility to know the zoning laws that cover the area and the building. Checking the local crime rate is recommended as well. Some locations are more susceptible to crime than others. The businesses around you, the amount of lighted areas, the placement of alleys, and more can affect the crime rate.
2. Choose a Well-Constructed Building with the Proper Space
Not just any building will do. You need the right building. If you need a factory floor, then the building should have the space you need. If you need several offices, then a small building with barely any office space won’t suffice. Make sure the building can meet your needs and grow along with your business, at least it its early stages.
Avoid buying property that requires too many repairs. The ideal property requires no repairs, but that’s not always possible. You might need to make a few tweaks here and there, depending on how much you’re paying. But unless your business involves renovating and reselling property, go for something that’s already in good shape. Even if you’re offered a good deal, consider the cost of renovating and getting the building up to code.
3. Consider the Local Workforce
It’s beneficial when you hire local workers. Thanks to the internet, you can attract workers from all over the world. But generally, it’s convenient when workers already live in or near the area.
Are there skilled workers nearby? Check the condition of local schools and higher-education opportunities. Do the schools in the area receive failing grades? Are residents forced to leave the state to pursue higher-education? Are there local schools that offer customized workforce training? It’s possible you may have the resources to provide training. But if not, you’ll have to consider where to get your workforce.
4. Look at the Community
Is the local housing market thriving or dying? It’s possibly not a good business location if surrounding neighborhoods are dying. Perhaps there is an abundance of empty homes that aren’t even worth renovating. The streets are in desperate need of repair, there is high crime, and the property values are low. Neighborhoods are an excellent indication of an area’s economic stability.
Good and affordable housing will help attract better worker. Depending on your business, you might also benefit from attracting customers that are nearby. For instance, a laundry business would do well to attract local customers. But if you’re surrounded by poverty, then you’re less likely to do well. It’s not always the case, but the condition of the people in the local community can affect your business.
What's Next?
The area is great. The building is great. Now, what is the cost of doing business in that location? Consider things such as how much rent you’ll pay, will you need to build a parking lot or parking deck, and is cell service and internet connectivity good in the area. There’s also the issue of security and perhaps renovation costs. Take time to consider all of these variables. Doing so will help you make an informed decision about the best location for your business property.
