How to Pick the Perfect Property for Your Business

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Renting or buying retail space is one of several expenses associated with running any business. Planning for these expenses will help you keep from incurring unnecessary financial stress.

If you're ready to find a brick-and-mortar location for your business, there are several things to consider when looking at retail space. 

First, think about these questions: What is the purpose of your shop? Do you plan to simply sell things? Or do you wish to create a space for people to meet up? Asking yourself these questions should help determine what type of space you need.

The Building: Pick One That Fits Your Business

Your property should match the purpose and vibe of your business. It should also look neat and attractive and be easy to maintain.

Where should visitors feel comfortable and relaxed? What kind of visitor numbers would you expect? Do you require car parks, or can you locate a nearby garage? Are there good footpaths to support your business? Does anyone have particular needs, such as disabled facilities? Can you provide a map showing where you are located?

Are there any specific things that make the building appealing? For instance, are there meeting rooms, kitchen facilities, or fitness centers? Indeed, it should also be safe. 

The Location: Find the Right Area for Your Business and Understand the Area

When considering where to set up shop, consider where you would like to be located. Location can make a difference for any business, especially those that sell goods or services to the public, such as restaurants, retail stores, and service providers. If you need help determining where you'd like to be, analyze the local market and find out what people are buying. 

Remember that not every retail area is the same, so don't assume that one retail space is better for business than another without doing homework first.

Additionally, your business should be located by similar companies or ones that complement it. For example, purchase an office close to hospitals if selling medical policies. Being able to find one or two buildings with similar tenants nearby your location can be a great rule of thumb.

As you think about the general location and type of building you want for your business, you should also consider costs, space, and what you can afford.

Figure Out How Much Space You Need 

Determining how much space you need is one of the most vital factors to take into account when considering a commercial property.

To calculate the approximate number of square feet needed for your business, use this simple formula:

Gross Sales Volume ÷ Sales per Square Foot = Size of Selling Space

You'll want to consider factoring in some extra space for additional areas you might need inside your retail location, like:

  • Stockrooms

  • Office spaces

  • Bathrooms

  • Dressing rooms

  • Storage rooms or space

  • Checkout counters

  • Breakrooms

To Rent or Buy?

Keep in mind that the company will continue to grow. Therefore, it's essential to consider what future expansion you want to see in 5–10 years. Do you want to open new offices? Expand your services? Increase your team? Those things will all affect how big your space needs to be.

Think about the following questions when making decisions about how much room you want for your business and if you want to consider buying that space instead of leasing:

  • How long will you be staying at this location? You want to purchase only a little space if you plan to move out within a year. However, consider purchasing more significant space if you plan to remain there for several years.

  • Will you ever move locations? If so, think about the cost of moving.

  • Will you require additional space in the near or distant future? For example, if there are going to be additions to your current staff, you should anticipate that and figure out how to fit them into your existing space or find a new location for your business.

Buying commercial property may make financial and strategic sense for your company if you're in a stable industry (like dentistry or insurance).

Also, remember only to get tied down to a building if it can handle your needs (or your employees') a few years into the future.

Research Average Rents Near Your Anticipated Location

To calculate the average monthly rent for an apartment near you, figure out the average cost per square foot (or meter) in the area and then multiply that number by the total square feet (or meters) you need. Finally, divide by 12 to arrive at the average monthly rent cost.

Retail space in Austin for lease will go for an average commercial price per square footage of about $24. Let's say you're a small gift shop that needs roughly 1000 square feet of retail space.

Multiply 24 by 1000 to get 24,000. Then, divide 24,000 by 12 (24000/12). That equals 2,000.

Your rent in Austin might cost about $2K per month.
You can also team up with a real estate broker or agent who can assist you in finding great deals for retail space rentals with the characteristics and price ranges you desire.

Get Professional Help for Your Property Search

We recommend hiring an experienced real estate professional who knows the ins and outs of commercial real estate to help you find a suitable space for your business.

They also know how to negotiate good deals when you hire them. When you hire a realtor, you get a wide range of people who specialize in different properties. This gives you immediate connections with lots of different kinds of brokers and experts.

A real estate agent can also help you determine if a particular property is right for you. For example, you might be looking for a place with lots of foot­ traffic to attract customers, or you may want one that offers a peaceful setting so you and your customers can concentrate without distraction.

A real estate agent knows precisely what to ask to get every single detail you need to make an informed decision.

You can also look up commercial real estate listings online through marketplaces. Some sites, like MyEListing.com, allow you to view details about properties and the brokers and agents who represent them.

Now, Dive In!

Getting into a physical space for your business is extremely exciting and a huge step in growing your company; congrats! These guidelines and more are a great place to start when looking for the perfect property for your business.