Top 5 Tips To Rent The Best Commercial Properties For Your Business
Choosing a new rental property for your business can become an overwhelming proposition. This is especially true if you do not know what you should look for in your rental office space.
Many business owners make the mistake of not selecting the ideal rental property. They are forced to shift operations, employees, and infrastructure midway.
This is detrimental to a business’ interests. Ideally, an office space should be a stable location that can allow for great work over sustained periods. If you have to move every six months, you are jeopardizing your business and its employees.
We take help from Mark Brower, the head of Property Management in Mesa, AZ. We ask him about some tips business owners can use when renting a commercial property. We also ask him to shed light on the comparisons between renting and buying commercial properties.
Renting Versus Buying Commercial Property: What you should do?
As Mark Brower said, both renting and buying commercial properties have pros and cons. Buying commercial property is primarily for appreciation and investments. On the other hand, renting allows for greater flexibility and lower costs.
Further, he explained that businesses aim after the pandemic is to focus on buying commercial properties that are cost-effective.
Firstly, most business owners are making the decision to save on huge costs. Further, they invested in business operations after the pandemic. In such cases, renting commercial properties seems to be a worthy and rational option.
Secondly, He also states that buying properties means you will be responsible for the taxes, licenses, and other official regulations. Moreover, these are unnecessary distractions for your business.
Besides, renting is a far better way to proceed without taking too much responsibility.
List of the Top 5 Tips to Rent the Best Commercial Properties for your Business
Are you renting a commercial property for the first time? If so, the following steps can help make the process simpler.
Commercial property can have a direct impact on your business. So, always remember to choose it wisely. And for the rest, you can follow the tips.
1. Decide on the Nature of your Requirement-
Brower states that businesses must first pay attention to the specific nature of their requirement. This means you will have to focus on three areas:
- The number of employees you have
- What kind of a business you are
- How much are you willing to invest?
Businesses should also plan in terms of growth. If you have fifty employees today, you might have sixty next year. Hence, you should prioritize planning and deciding on the exact nature of your requirements.
2. Location, Accessibility, and Availability-
Nothing is more important than location, especially regarding commercial property. Maybe you are looking for a shop, showroom, or industry shed.
However, you must understand that your business’s success or failure is highly dependent on its location.
In fact, rental prices in cut-off areas might be lower. You just need to select a property that is well-connected and located in some proper business district.
Besides, you might have clients coming up to your office. You must pay attention to the transportation. This will help employees to reach the office.
Suppose your office is in a broad area. Then, you will fail to attract the best talent for your business.
Additionally, the right location can help you with 12-13% returns. Instead, an average location decreases the yield to 9-10%.
3. Budgeting and Extra Expenditures-
Business owners should not just take the rent into account. They need to consider other costs. This would include
- Maintenance costs
- Electricity charges
- Other overheads (which will be added to their financial strain over time).
If you have to undertake some construction work, you are looking at a huge figure. Brower states that the actual rent is just part of the financial expenditure you are looking at.
4. Official Documentation and Paperwork-
The actual owner of a commercial property may be vague about some considerations. For example, who pays for the maintenance and repair costs, and so on?
You must read the fine print of the agreement. This way, you can raise issues that need to be clarified and transparent.
This will allow you to be completely aware of your responsibilities for the rented office space.
5. Take Help from an Expert Property Management Company-
Adding an intermediary in the entire process may only lead to extra costs. However, what you should take into account is that a credible property management company. This will act to defend your interests if something goes wrong.
They will step in and hold the owner accountable for wrongdoings. You will also get to see better properties and help with the paperwork. Going solo is not a good idea when renting commercial properties.
Additional things that you need to consider
While you can follow the above tips, there are some additional factors that you have to consider. These tips will help you to find the best commercial property for your business.
Create your business checklist.
Firstly, before deciding which property to buy, you should have your business requirements. Check whether it is going to cover all the amenities.
This way, it will be easier for you to choose the right property.
Hire an expert
Secondly, you can take advice from a real estate expert. They can help you find the right property that fits your business needs.
Other than that, a commercial or local real estate agent can help you with the following:
- Choosing the right location,
- Negotiate on the overall lease terms.
- Guide you to complete the rental process.
Requirements for your licensing and safety
Lastly, you must ask your property owners if you need any permit paper to run your business. On the other hand, keep your business licenses ready. This way, you avoid heavy penalties and government closure.
Don’t panic! Your real estate agent can help you to keep your papers ready. On the positive side, they will help you to follow all the safety guidelines to run a safe buisness.
The Bottom Line
You can ensure that you are well-prepared to rent your next commercial property by following these five tips.
Renting commercial property might be challenging. However, if you follow the basics, you must worry about and pay attention to the business and its development.
If you have any other questions, please contact us! List all your queries in the comment section below. We will try our best to solve them.
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