6 Big Mistakes Businesses Make When Choosing Commercial Real Estate
As a business, you generally need a commercial real estate (unless you’re planning on running your operations from home). But rather like buying a house or a flat, there are lots of pitfalls. In fact, a lack of experience can lead to bad decisions that severely undermine your business.
In this post, we take a look at some of the most common mistakes businesses make when choosing Commercial Real Estate, and how you can avoid them.
Failing To Consider The Interior
While new Commercial Real Estate might offer the square footage you need, there’s more to the story than that. Not only do you need enough space for all your staff and equipment, but you also need a suitable interior layout too.
For instance, if you’re looking for a large warehouse, it doesn’t make sense to buy a building separated into small rooms. Likewise, if your office needs private spaces, then open-plan options don’t make sense and will cost you a lot of money to put right.
Moving Instead Of Knocking Down And Rebuilding
Moving commercial real estate is also extremely risky. Customers might not know where you’ve gone, and you could risk losing some of your top employees.
However, you may not actually have to move at all. One option is to hire commercial demolition contractors to raze your existing facilities and then build something more suitable for your needs on the existing site. You may even be able to add to your existing premises without having to relocate at all.
Comparing Lease Prices And Not Considering Other Factors
Just going for the cheapest lease that you can find is one option, but not a particularly good one. That’s because there are all sorts of other factors that you need to consider such as the proximity to your customers, the price of utilities, and the number of competitors nearby. In many cases, you’re better off going for a slightly more expensive lease if you can fulfil your other objectives.
Forgoing An Agent
Another major mistake is forgoing an agent. Trying to find commercial real estate to lease without professional help can lead to difficulties. For one, navigating commercial leases is complicated and often requires expert assistance.
Trying To Move Rapidly
Trying to move rapidly can also be a problem. Today’s businesses want to view themselves as agile and highly flexible so they often see moving as something they can do quickly.
However, relocating is a physical process, not a digital one, and so change is often slow. Moving under tight deadlines often leads to disorganisation and chaos on the ground. It can also result in higher lease prices as landlords detect a sense of urgency.
If you know that you’ll need to move in the future, start the planning process today. Don’t wait. This way, you can get a better deal when the time for relocation finally arrives.
Ignoring Term Length
Lastly, you might think you’ve found a great deal, but if the term length is ten years, you’re then locked in for a long period of time. Ask yourself, what would happen if there was an economic downturn? Could you survive?
Special thanks to the following source(s) for the image(s) used in this article:
DISCLAIMER: This is an affiliate article. We post affiliate articles with the intent of helping you grow. They are not written, researched, or necessarily endorsed by our team. They are simply content submitted to us by what appears to be respectable affiliate sources, people, and organizations, which upon initial review, seem solid and helpful to our community, so we post them. It is up to you to personally verify the facts, links, organizations mentioned, the validity of the information presented, and any/all claims made in the article(s). To report an issue with any of the information, links, or organizations mentioned in this, or any content posted on our website, or if you simply have a question or need something we can help you with, please contact us now.