In a previous post we covered What to Consider Before starting a Business and one of the points we made was considering the space you’re in and preforming a “strengths & weakness analysis” on your property. There’s been a lot of questions on what should be considered before you lease a space and we’re going to cover that today.
Starting a business is stressful, there’s a lot to consider before going all in. Before you start your lease on your new suite I suggest you ask yourself these questions.
1.)Does it allow for long term growth
Most commercial spaces require lease terms between 2-4 years (occasionally more). You have to remember that you’ll be in this space for a minimum of two years and you want to anticipate the growth your business will experience in this space. Take a look in the future; is this space large enough for your current & future needs? Are you leasing this space because you anticipate clientele from one strong tenant (who might be leaving in 6 months?) You are more than welcome to ask the broker or property manager what they see for the future of the center.
2.) Are you able to afford it?
Consider that like leasing or owning a home, a commercial space also comes with unlisted charges. You must be able to afford the space and what it truly costs. This includes your rent, CAM fee’s, insurance for the space and any unforeseen maintenance. You are responsible for the HVAC unit, bathroom and anything else that might occur in your suite and remember you’re responsible for the space for the next 2-4 years!
3.) Do you feel safe/do your customers feel safe?
Is the shopping center poorly lit? Is it in a high crime area? Crime can happen anywhere no matter how nice the location is.. but if you’re in a lackluster center with a heavy solicitor problem your customers might not feel secure doing business with you. Consider your clientele type and where they’re willing to shop.
4.) Is there Organic Advertising Available?
Is your space able to garner interest without spending money on advertising? Do you have signage on your building or a pylon, how about other tenants in the center..are you able to “steal” some of their clients? Some of the best centers are ones with a grocery store, gas station, tattoo parlor/coffee or a corporate business model located within (simply because they have customers all day.) You’ll have to spend money on advertising some time during your lease, but the more free advertising the better (here are some FREE advertising ideas).
5.) Is the location convenient for current & future clientele?
Is the suite centrally located to current clientele? Is parking easy, how about ingress & egress? The easier it is for your current clients to access your suite and for potential clients.. the better. Personally speaking; there is ‘Gas Station A’ near my house that is much closer than ‘Gas Station B’ but I always choose ‘B’ because it’s more convenient to get to, the ingress/egress is easier and it’s just EASY. Consider what’s best for your customers, after all, they’re keeping you open!
If this helped you on your path to leasing Commercial Real Estate we’d love for you to share it, or leave a comment below!