How to Assess Which Commercial Property Is Right for Your Business

The right business location can do 50% of the heavy lifting for your business. Choosing the right commercial property is a key decision that can have lasting effects on your business. The right space can support your growth, attract the right customers, and allow you to operate efficiently, while the wrong choice can lead to unnecessary costs and operational challenges. 

So, how do you determine what the right property move is?

Here’s a guide to help you assess and select the best commercial property for your business and investment goals:

1. Location is key - especially if you’re B 2 C (business to consumer) 📍

• Make it easy for customers:  Make sure you’re easy to access for your customers. If you’re a retail business, foot traffic and visibility are crucial. For service-based businesses, being close to your clients can boost your credibility and reach.

• Accessibility for staff: Easy access for employees is equally important. Look for proximity to public transport, major arterials or roads, and available parking to ensure your team can commute comfortably. In the face of working hybrid, more and more this is becoming a key consideration. Make sure its a space your staff want to come to, not just need to come to - accessibility is a big part of that.

• Nearby Competitors and Complementary Businesses: Check if competitors are nearby, which can be beneficial or detrimental depending on your business type. Nearby complementary businesses can drive more foot traffic to your location and potentially create partnerships.

2. Evaluate Space Requirements - consider growth 🛋️

• Operational Needs: How much space you need to operate smoothly and factor in business growth. List your equipment, storage needs, and operational areas to get a clear idea of the minimum space required.

• Room for Clients and Customers: Consider areas for waiting, customer service, and display. 

• Staff Comfort: Allocate enough space factoring in collaboration areas, break rooms, and workstations. A productive and inspiring layout can directly impact staff engagement.

3. Think About Future Growth 📈

• Scalability of Space: Even if you don’t need much space now, consider your future plans. Can you expand within the building or add space if your business grows? Renting or buying a property with room for expansion can save costs and disruptions down the road.

• Flexible Lease Terms: If purchasing extra space isn’t possible, look for a property with flexible lease terms.

• Infrastructure for Growth: Check if the building can support any additional equipment, tech infrastructure, or utilities that future expansion may require. 

4. Identify and Attract Your Target Audience 🧲

• Customer Demographics: Who are your ideal customers/clients, and where do they spend time? Research the demographics and behaviours of the people in the area and who you want to attract. Moving suburbs as an example, can have a huge effect on business.

• Site Positioning: Consider the businesses in the area you’re reviewing. Being positioned in a business hub around good operators or a particular neighbourhood can elevate your brand’s perception and visibility. 

5. Assess Property Condition and Required Renovations 🛠️

• Building Condition and Upkeep: Look into the building's age, materials, and general condition. Older properties may need repairs or upgrades, while newer ones often come with modern amenities that can support your business needs.

• Compliance Regulations: Ensure the property meets local building codes and is compliant with safety and accessibility standards. This will help you avoid costly legal issues and upgrades.

• Renovation Potential: Consider whether the space can be easily customised or renovated to fit your business. Some leases or property types have restrictions on changes, so it’s important to know what adjustments you’re allowed to make.

6. Review Financial Considerations and Hidden Costs 💰

• Initial Costs and Monthly Rent/Mortgage: Beyond rent or mortgage payments, assess upfront costs such as security deposits, renovations, and necessary upgrades. 

• Operating Expenses and Maintenance Fees: Commercial properties often have ongoing fees for maintenance, utilities, and repairs. Some leases also include additional charges for shared areas or building services, so factor these costs into your budget.

• Future Market Trends: Research trends in the area to gauge potential property value increases. An investment in an up-and-coming area could yield long-term benefits, while an unstable neighbourhood may bring unexpected costs.

7. Review Accessibility and Parking 🚘

• Parking for Customers and Employees: If your customers and employees rely on parking, make sure there’s enough space available nearby. Paid parking VS free and secure parking is an important factor.

• Disability Access: Ensure the property is accessible for people with disabilities, both for customer and staff inclusivity and to meet any legal requirements.

• Traffic Flow: Evaluate how easy it is for customers and suppliers to access your location, including loading and unloading areas for deliveries.

8. Check Zoning and Permits 📝

• Zoning Laws: Verify that the property is zoned for your type of business. Some areas have strict zoning rules, so double-check with local council to ensure you can legally operate your business there and consider business changes and growth   

• Permit Requirements: Certain businesses, like food services or manufacturing, require specific permits to operate. Make sure the property meets all regulatory requirements and has a history of compliance.

By carefully considering each of these aspects, you can make an informed decision when selecting a commercial property. The right choice will support your business now and set you up for future success.

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