If your success is taking you from an online business to a brick-and-mortar location, congratulations! While a great success, the process of finding a commercial real estate property might be a task that requires some extra effort. As your first physical location, you must choose a property that meets the demands and needs of your clients and your business. Learn about some of the reasons why working with a commercial real estate agent is vitally important.
A business expansion is an exciting time but also a period when balance is important. On the one hand, you may need to expand to a physical location to accommodate the growing demands of your company, but at the same time, you do not want to grow too quickly. Too much expansion can put your business in a financially vulnerable place.
A professional agent can review your budget with you and help you select properties that allow you to stay in this range. Now just in terms of the mortgage or monthly rental cost, but also when you factor in expenses like the average utility cost for the building.
Development Projections and Trends
The internet is one big, open marketplace where just above every business has an equal opportunity, but things are a little different when it comes to physical locations. A business on a street that is hard to access or in an area flooded with similar businesses may struggle more than a business in a more favorable arrangement.
Real estate agents cannot predict the future, but they know how to analyze market trends and review zoning requests to see what development projects are on the horizon around any property you consider. With this information in hand, you can make a more informed decision on the location.
If you choose to rent your first physical location instead of purchasing immediately, a commercial real estate agent can also help with the lease negotiation process. Commercial leases often come along with more opportunities for negotiations than residential ones.
For example, you can request what length of lease term you want. You can also request specific building updates or buildouts, such as new kitchen equipment for a food-service business. Your agent can help you formulate and negotiate lease terms that suit your company's needs.
A commercial real estate agent will help simplify this process and ensure you are protected, so be sure you have an agent on your side.