Finding a home for your business can be stressful – with so many different properties on the market today, it can be hard to find one that meets your needs.
Fortunately for you, there are a few simple steps that you can take to ensure that your new commercial property is perfect for your business.
What to look for when buying commercial property
It’s not easy to find a suitable commercial property, so you need to be careful to avoid any future regrets. Here are the factors you should keep in mind when you are looking for a commercial property:
The most critical factor in commercial real estate is location. Your business should be based in a place where there are a lot of customers and a good base of suppliers, as well as easy access to transportation.
A good size for most retail space is around 1,500 square feet, while most office space has an ideal range of 5,000 square feet to 10,000 square feet. However, what matters more is how much revenue potential your commercial property has. So make sure you factor this into your decision-making process when choosing the right size of commercial property to buy.
Rent price vs. selling price
When deciding on what price to pay for your commercial property, always remember that it needs to have a good return on investment (ROI). Otherwise, it would be better to rent out the space instead of buying it outright.
There are many different types of commercial properties, from warehouses and factories to offices and retail spaces. Each type comes with its advantages and disadvantages.
What to look for when leasing commercial property
A commercial leasing agreement is a legal contract between the landlord and tenant. It outlines the terms of the property management and specifies responsibilities for each party. Here’s what to look for in a commercial lease.
Leases can either be “term,” or they can be month-to-month, which means that either party can terminate the agreement with notice. The length of the lease will depend on the anticipated duration of your business and how long you want to commit to one location. If you are starting and don’t know if your business will succeed, you might want to start with a short-term lease rather than tying yourself down to a long-term arrangement.
This section states what property is being leased, including the dimensions of the address and square footage or parking space. If space is shared, such as in an office building with common areas such as hallways and bathrooms, this section will specify how much of the total space is being used by your business.
A term lease specifies an end date for the term. For example, if you have a five-year lease for office space, either party can terminate the lease at the end of year five without further obligation. Term leases are advantageous because they provide both parties with flexibility
Security deposits are one-time payments that landlords require to protect themselves against damage or unpaid rent during your tenure as a tenant. Though state laws vary, landlords typically can’t use security deposits for anything other than repairs that were not part of normal wear and tear on the property.