Commercial real estate is one of the most important decisions you’ll ever make when starting your business. Not only does it dictate the look and feel of your business, but it can also help you save money on costs like rent, utilities, and mortgage payments. To make the right decision for your company, it’s important to know what to look for in a commercial space.
What to Consider Selecting a Commercial Space
Finding a small business space to rent or buy can be both exciting and difficult. There are a myriad of considerations you need to keep in mind in order to find the right space for your business. Whether you are looking for a long-term lease or a more robust investment in real estate, there are important parameters that should not be overlooked.
The most successful commercial real estate transactions occur when all aspects of the initial plan have been considered. Before making a decision, take the time to do your research and understand your precise needs. Some common parameters include budget considerations, geographic location, and suitability for the business type, among many others.
This guide explores some of the key features you should consider when selecting your next small business space for rent. Familiarizing yourself with these points early on in the process and keeping them at the top of your mind throughout the search will help you find a space that meets your needs now and into the future.
When selecting your next commercial space, location is a key factor to consider. Choosing the right spot for your business can help you maximize its success and create long-term growth potential. Whether you’re looking for a small commercial space for rent or something larger, the following factors should be taken into account when making this important decision:
The most important thing to look at is the local market. What are the current trends in terms of businesses operating in the area? Are there any opportunities that may be available now or in the future? In addition, you need to consider access to transportation, including roads, public transportation, and airports.
Also, you need to consider access to suppliers and vendors, proximity to current or potential clients and customers, the visibility of the location itself, and the nearby availability of skilled labor. Considerations such as these help ensure that your business enjoys increased success in terms of sales and profits. Additionally, look for regions with locally favorable economic trends or policies. These can have a positive impact on conducting business in that area.
2. Building Type
When selecting a small commercial space for rent, it is important to consider the type of building you are looking for. Is the space you need going to be used as office space, or will it be a factory, retail space, laboratory, or warehouse? Depending on the nature of your business and its needs, you may require a building type that can accommodate these specific elements.
- Office Buildings: Office buildings are more likely to accommodate businesses focused on administrative services. These are such as lawyers, accountants, advertising agencies, or IT offices. These buildings generally consist of offices, conference rooms, and open areas suited for productivity and collaboration.
- Factory Buildings: Factory buildings provide larger spaces that can accommodate businesses focused on production process activities. This type of building makes use of machines and automated systems to manufacture goods or components. Generally, there is a higher ceiling height when compared to other building types. This also increases ventilation which is beneficial for some processes.
- Retail/Frontage Buildings: These spaces are designed for businesses that require exposure from the street or highway, with additional space for storage in back areas and loading docks if necessary. These buildings can have adaptive uses such as grocery stores, restaurants, sports stadiums, entertainment venues, libraries, museums, galleries, markets, amusement parks, etc.
- Laboratory Buildings: Lab buildings provide specialized spaces suitable for activities related to scientific research and development (e.g., biotech laboratories). Commonly these spaces include elements such as lab tables with sinks; incubators and coolers; high-tech ventilation systems needed due to hazardous substances being handlon in the premises, etcetera.
- Warehouse Buildings: Warehouse buildings provide rugged configurations suitable for businesses focused on storing products. This building requires special temperature/humidity conditions together with racking systems or other storage solutions if appropriate. These properties usually have parking lots with docks that work as vehicle-loading solutions needed by firms providing logistic services (e-commerce firms).
3. Floor Plan
When deciding on a commercial space for your business, the floor plan can be one of the most important factors to consider. It is important to find a space that has a layout that suits the needs of your business and its operations. A floor plan should include all room spaces and their connectivity, as well as any hallways and exits included in the space.
Floor plans also take into account features such as open or closed bays, windows, doors, staircases, elevators, and wall treatments like sheetrock or wood paneling. When choosing your next small business space for rent, consider whether it is easily adaptable to fit your current needs as well as potential future needs for growth.
4. Building Amenities
When it comes to selecting a commercial space for your business, it’s important to consider the building amenities and features that will best support your operations. Building amenities are features and services that are located in or near the building, such as restaurants, shops, childcare centers, and even access to public transportation. Some of the most important amenities to consider when selecting a space include:
- Parking: There needs to be adequate parking available for customers, clients, and employees. Bear in mind that some cities may require visitor parking or reserved spaces.
- Public Transportation: If your employees rely on public transportation, check if there is proper access available near the building. Consider how far away your closest subway station or bus stop is from the property you’re looking at.
- Security and Safety Facilities: Security systems, including alarm systems and cameras, are important for any business premises. You need to ask about what types of surveillance technologies are installed and what types of security measures have been taken around or within the building areas.
- Recreation Facilities: There may be other recreational facilities available on-site. These are such as included gym memberships, swimming pools, or even walking trails close by; look into these options before making a selection decision.
- Accessibility Features: Commercial properties come with all sorts of accessibility features, including wheelchair ramps, elevators, internal pathways, and wider door openings. You need to check if these accessibility features are currently present in the property you’re considering leasing.
5. Cost Considerations
When selecting a retail space for lease or leasing a commercial space, it’s important to consider the various costs associated with it. Having a good understanding of your budget and financial factors will prevent you from overspending on a space that is not suitable for your business.
The most important cost consideration when selecting a commercial space is the rent. This is usually expressed in terms of dollars per square foot and can vary dramatically depending on location and other factors. If possible, negotiate for lower rent or try to get additional concessions such as free parking for customers or more flexible lease terms.
Additionally, you should also factor in other regular expenses, such as utilities and taxes, that may be required in order to operate the space. Also, take into account potential expenses related to renovations or modifications if they are necessary.
It’s best to know these specific numbers as accurately as possible before signing an agreement. Finally, factor into your cost considerations any maintenance fees that might be associated with the property, such as landscaping fees, snow removal fees, etc.
By considering all of these factors before signing an agreement, you can ensure that you are getting the best deal possible.
6. Lease Terms
Lease terms are an important factor to consider when selecting a shop space to rent for your business. They can determine the length of time you rent the property and the type of agreement that you enter into with the landlord.
Most lease structures for commercial spaces will include a base rent amount, an additional negotiated cost known as tenant improvement allowance, and any special clauses that the landlord may add. Some leases will also include additional provisions such as options to renew or terminate the lease early, maintenance responsibilities, and more.
It is important to review all areas of a lease agreement to ensure that it meets your current needs and allows for some flexibility in case your business needs change in the future. Having a lawyer look over your agreement can be helpful in ensuring that it is fair on both sides.
Once you’ve agreed to the terms of a lease, make sure that all tenant improvements are completed according to specifications. You need to review any other clauses that can help make your tenancy successful over time.
As you consider the different factors that go into choosing your next small commercial space for rent, it is important to remember that it is ultimately your decision. While considering key factors such as the overall cost of the space and its location, also think about how to make sure the space suits your particular business needs.
Will this layout accommodate your staff and equipment? What kind of amenities does the building offer? Are there any renovations that need to be done before you move in? By taking a few extra minutes to consider these details, you can ensure that you make the best decision for yourself and your business.