You’ve been putting in the hours developing a business plan for your fledgling business, and now you’re ready to make your next move - to find a location to sell your product. Making this step out into the business market can be flooded with obstacles, and you want to get ahead of the game. What are the things you need to know before leasing a building and making sure your new business will be a success?
Location is everything! Finding the right location is the key to making your business thrive - there are plenty of properties on the market but not everything is right for you. Make sure you know your demographics for your business. This will help you narrow down which part of town you want to be in. A commercial agent has access to multiple platforms to help you with this process.
Zoning - will this site work? So you found a location that you think may work but the previous tenants business differed vastly from your concept. What does this mean? You’re going to want to get ahead of zoning before entering a lease. Take a trip to your local zoning board. You may find that there can be some major hurdles here that could end up being a burden on your pocketbook. The zoning department should be able to give you more guidance should a change of use be necessary.
Who’s going to pay for that? In commercial real estate, most buildings that have had previous tenants will have a little more wear and tear on them than brand new construction. Problems arise - the HVAC system is out of date, the electrical in the building needs work, the interior layout of the building needs to be demolished. Who is responsible for that? Before entering a lease, negotiate these terms with the landlord. There can be a lot of hidden costs in leasing a space and you don’t want to be the one holding the bill at the end. Bringing in outside help of a contractor can help you grasp what kind of costs you will be looking at; this will help as a negotiating tool when working with the landlord.
Insurance? Permits? Depending on the business, use of the building, or landlord requirements, there can be a lot of work to do regarding obtaining the proper insurance and permits. Make sure you shop around! Your business will be responsible for liability insurance and possibly more. Do your due diligence on researching insurance policies and make sure you find the right one. Building permits may be required depending on what kind of work needs to be done. Know that this takes time and may push back an anticipated opening date.
All this being said, the most important thing you can do is work with a commercial realtor. They will give you guidance and will work with you to get you the best deal on your new location. Locate an agent who has a niche for your business model and let them do the heavy lifting for you regarding your new lease.
With this valuable information you'll have a head start on getting your new business off the ground. Know that there will always be unseen obstacles to overcome and keep pushing forward. The world looks forward to seeing you succeed in 2018!
Cameron Lombardo is a commercial realtor at RE/MAX Commercial Brokers, Inc. in Metairie, LA. He has an expertise in retail and office leasing and sales. Contact him today about any real estate needs you may have!
Follow him on Facebook @CameronLombardoRealtor
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