If you’re looking into buying a commercial property to house your business, you probably already know that there are a lot of factors you need to consider. The following will explore a few things every business owner should keep in mind when they’re buying a commercial property. The focus will be on purchasing a property from which you’ll operate your business, but much of the below information pertains to those who are seeking commercial properties for the purposes of renting them out to businesses as well.
Location, Location, Location
When you’re looking to buy a commercial property for your business, one of the major things you want to think about is the location of said property. Is this going to be somewhere that your customers or clients will be able to easily access? Is it located somewhere where people who aren’t aware of your services but might need them to spend a lot of time? Remember, your business location is also a part of your marketing as it is a visual representation of your business; if people pass by regularly, they might take a look inside or might remember the location should they find themselves in need of your services in the near future.
You want to look into the economic standing of the area. What is the average household income? Can you find listings where the average household income reflects your standard customer’s income level? Does the area skew older or younger, and does that affect who might need your services? What is the crime rate like? Is the economic situation on the incline or on the decline? Is the town or city built around industry with a shelf life? Is there one or two major employers that might shut down, leaving the place economically struggling? You want a location that gives you the opportunity to grow your business by encountering more potential customers with
Businesses In The Area
Pay attention to businesses in the area. Are there any competitors that are close to the location? If they’ve been around longer than you have, they might have taken up a large percentage of the market share. Are there lots of vacant commercial properties? Do businesses regularly open and close? You want to assume that your business isn’t going to be an exception to the patterns you’re witnessing in a particular location. It might be, but you shouldn’t be investing this much money, assuming it will be.
You spend a lot of time at work. Recent studies have found that poor air quality is responsible for 1 in 5 deaths. Combine these two pieces of information, and you end up with the very important realization that air quality is important when selecting a property to buy. Do some research on the quality of the air in the area and steer clear of properties that are beside properties that create poor air quality like some types of factories and dry cleaning businesses (living or working next to a dry cleaner increases your risk for cancer drastically due to the chemicals used that are released into the air). Paying attention to these elements will also help ensure the air smells good in your place of business (when something smells bad, it’s our body’s way of telling us that something in the air is bad for us). Negative smells can send away customers at a rapid pace.
While you’re looking into the cleanliness of the air in the area, you might also want to look into the water. Studies have found a link between cancer and common water additives like chlorine. This point is especially important if water is part of your business (like, for instance, if you provide meals for people). Bad water doesn’t have to mean a property isn’t the right fit, but it might mean that you need to get a water filtration system installed. If that’s the case, be sure to include the cost of such an arrangement in your determination of extra expenses.
Is your business the kind where people need a place to park when visiting? If so, you want to ensure that your location has parking included or at least nearby.
The above information should help you get started searching for a home for your business. Of course, depending on your line of work, there may be specific features you need as well; a movie theatre and a restaurant need different elements in order to function. If you’re having trouble, it’s a good idea to reach out to a local real estate professional who can walk you through what is currently listed as well as explain to you the history of the areas you’re searching in.