Factors to consider when choosing a commercial property

5 Key Factors to Consider When Choosing a Commercial Property

Are you on the hunt for a suitable commercial property? Whether you want a new location for your own business or wish to invest in a commercial property, finding the best fit is crucial. The choice of a commercial premise will affect various aspects of a business. The location, price, security, and building regulations can determine how well it suits your needs. Here’s a look at 5 key factors that will influence the choice of a commercial property.

    Cost

When investing in a business structure, a prudent entrepreneur will consider how its cost will affect the bottom line. The lease or rent rate is a key contributor to your operational expenses. If it’s overpriced, this is one expenditure that can sink a business. For this reason, you should strive to ensure the premise you acquire charges within your desired budget. When negotiating, determine if the quoted amount includes recurring charges such as utility fees and maintenance costs.

If the lease or rent amount isn’t gross, consider other costs such as the cost of utilities, parking fees, janitorial service costs, renovation costs, and maintenance charges. These costs increase your average monthly expenditure on the property and will always influence your bottom line. Get an overview of the total expenditure and choose a premise with a reasonable price. A higher cost could be justified if the location results in higher revenue.

    Location

There are a few things to look at when determining a suitable location for a commercial building. Accessibility is an important one. You should choose a place your clients and employees can easily access. It should also provide ample parking for both customers and your staff. If this is a new business, ensure the premise’s location is within an area where you can get the necessary human resources. If you run a business that involves heavy trucks loading or unloading goods, then a location with relevant road networks should be a key consideration.

Besides, consider the security of an area and its safety from natural calamities. You don’t wish to establish your business in a place where crime rates are high or an area that’s prone to earthquakes, strong winds, and floods. Survey the area properly before signing a lease or a purchase agreement for a commercial premise.

    Building regulations

consider building regulations when choosing a commercial property

Each area has its rules and regulations that govern how commercial properties in an area work. Even simple things such as signage and fencing in an area could be regulated. It means you can’t just hire fencing contractors to install any fence you like just because you want to make changes. You might also want to dig deeper to discover if there are specific regulations that are imposed by the landlord.
Some regulations may touch on renovations, change in the use of the business, as well as health, fire, and safety codes. You should also check whether the building meets building standards to make sure you don’t endanger the lives of your clients and workers. In case you don’t understand everything you need to ask about, talk to a licensed building inspector or a commercial attorney and they’ll help you get the building regulations right.

    Nearby facilities and amenities

It’s important to choose a premise that’s in an area that has enough facilities to support your business. Even if you are renting out the premises, relevant social amenities make it attractive to run a business in an area and will attract clients faster.

For instance, if the business needs workers, does the area have suitable housing, health amenities, restaurants, and schools that can serve employees? Can they get whatever they need at reasonable prices? This determines whether your employees will remain in your business for long or will be searching for opportunities in areas with conducive living conditions.

    Size and orientation

The size of the unit you settle for will determine how much space you’ll have for your business. This factor will vary depending on the business. For instance, the space requirement and layout for an office will differ from that of a retail store. Also, the unit’s orientation will determine how well you can utilize the space. Above all, commercial properties of different sizes come at different prices. Other things that you’ll consider when determining the best size and orientation of the property are your needs for future expansion and lighting or ambiance.

Essentially, there’s an ambiance and appearance that suits different businesses. Choose a premise whose location, structure, and orientation can help you attain the style, feel, and right image of your brand. That way, you’ll easily attract the right customers to your business.

    Conclusion


It’s helpful to get things right when assessing a commercial property. You don’t want to make a deposit or settle down and realize that the property doesn’t match your needs at all. Moving a business is a costly affair that requires careful planning and choice of facilities. Use the ideas above to identify a commercial property that suits your needs before you make that big investment or business move.