Without a location, a business is just an idea. When business owners set out to find their ideal location, they usually use experienced real estate agents to help in the search. But even a good commercial real estate agent is only as effective as the information they are given. As a small business owner prepares to hunt down the ideal commercial property for their business, there are a few common mistakes they need to avoid if they want to get the best possible deal.
Not Taking Future Zoning Needs Into Account
It is common for commercial real estate agents to make sure that the properties they recommend to their small business clients are in areas that are zoned properly. If the zoning is wrong for your business, then you cannot put your business in your new building. While that is great for the short-term, what about your long-term plans?
You need to let your real estate agent know if you have plans on taking on a new line of products or using a different manufacturing process that might not be allowed by the current zoning laws that apply to properties you are looking at. You do not want to buy a property that is great for the first year or two you own it, and then have to look again because the growth of your business prevents your property from being useful.
Not Looking At The Big Picture
While you want a property that is big enough to accommodate your business now and in the future, there are other considerations you need to make as well. Can you save money on shipping costs if your property is closer to the airport? Is the property you are looking at in a part of town that will make it easy to attract clients and employees? If you buy the property you are considering, how close are you to the basic services your business will need? When you buy commercial property, you have to think of how it will affect every part of your business if you want to buy the right parcel.
Not Considering Leasing Over Buying
Small business owners can sometimes become enamored with the idea of buying a piece of commercial property, when buying may not be practical. For example, if you know you will be growing quickly, then leasing a property can make more sense because it would be easier to leave and move to a bigger parcel. You should sit down with your commercial real estate agent and determine if you really need to buy your location, or if leasing makes more sense.
Not Checking Out The Neighborhood
You think you found the perfect location for your business, and you happily sign the purchase agreement to make that property yours. Within two years, the area has become overwhelmed by crime, many of the key business tenants have left the area, and your property is worth half what you paid for it. Before you finalize your deal, you need to do plenty of research into the surrounding neighborhood and make sure that you are getting into a good situation.
It takes a great deal of planning to buy the perfect commercial property for your small business. You need to take your time, do your homework, and find an agent you can trust to help get the property that is perfect for the future of your company.