Securing the right commercial real estate can be key to your business’s success. It can give you the space you need to expand your operations, give you a location that’s easily accessible to your clients and that improves your marketing, and provide easier access to the talent that your business needs.
But before purchasing or leasing a commercial space you have to be absolutely sure that it fits your needs. If you don’t, then you could wind up stuck with a property that is detrimental to your business’s operations and its bottom line.
So, before you move forward with any type of commercial real estate deal, you should carefully analyze your situation to ensure you’re negotiating terms that are right for you and your business. But what do you need to be on the lookout for as you navigate the process?
What to look for as you seek to secure commercial real estate
Good commercial real estate is oftentimes quickly snatched up, which might leave you feeling compelled to move fast to finalize a commercial real estate transaction. But before you do, you’ll want to pay particularly close attention to the following:
- Zoning restrictions: One of first things you need to check is any zoning restrictions that are on the property. If you don’t, then you might end up with a property that prevents you from carrying out your business operations, or it might limit your ability to expand and utilize the property how you want to moving forward. So, be sure you have a full understanding of how zoning impacts the property.
- Vacancy rate: If you’re purchasing a piece of commercial real estate, then you’ll want to know what the average occupancy rate is so that you know what you can expect in terms of rental income. Be sure to vet this number, though, so that you have a realistic expectation.
- Maintenance and repairs: If you’re looking to lease a commercial property, then you need a full understanding of your responsibilities and obligations, which might far surpass just paying the agreed upon rental rate. In some leases, tenants are responsible for maintenance and repairs made to the property, which can quickly become expensive. Try to negotiate this term in a way that limits your financial exposure.
- Improvement and alterations: Through a commercial lease, you might be able to negotiate terms that allow you to make improvements to the property that suit your business. If you don’t pay attention here, then you might be hampered in what you can do with your business and your property.
- Due diligence: Before buying a piece of commercial property, you need to conduct due diligence to assess everything from the building’s condition to any environmental impact your business might have on the property. Thoroughness is key here, as it can identify issues that might be a red flag that a commercial property isn’t right for you.
Competently navigate your commercial real estate transaction
Regardless of whether you’ll be renting or buying a piece of commercial real estate, you need to know how to negotiate for the deal that’s right for you. Keep in mind, too, that the terms mentioned above just scratch the surface of what you might face as you move forward with your deal, so make sure you’re being as thorough as possible. If you don’t know where to start with that or you’d like some help, then be sure to read up on everything that deals with commercial real estate transactions and find the support that you need to comfortably and confidently move forward with your transaction.