5 Tips to Finding the Right Commercial Property

5 Tips to Finding the Right Commercial PropertyYou’ve probably heard the old joke about the three rules of real estate, “location, location, location.” As corny as it is, the truth of that statement cannot be denied. Finding the right commercial property for your business can be the difference between your business succeeding or failing.  Below are 5 simple tips to help you find the perfect piece of commercial real estate for your business.

Put Together a Plan of Action

Knowing what you want versus the reality of what it will take to finalize a purchase of your ideal property is essential. Too often business owners have a vague idea of what they want and end up settling. Having a clear idea of what you want will open the door to developing a plan. Some great questions to ask yourself are:

  • How much can you afford?
  • What type of location will attract your customers?
  • How much space do you need?
  • Should the space be able to grow with your business?

Find the Perfect Location

Location is key. Depending on the nature of your business, consider what type of commercial property will attract the most customers. Do you need a retail space in a shopping center or near restaurants? How close would you like your space to be to main roads? Greater foot traffic will increase the exposure your business receives. If you rely on in-person customers for success, aim for your space to be seen by the most people. If not, save money by locating somewhere less obvious but still convenient employees. 

It is also vital to research the commercial market of the area you are considering. Research lease rates in the area and try to negotiate a set rate. Insurance needs also vary depending on the location. Consider extra expenses such as flood or earthquake insurance. 

Set a Budget

Being aware of your realistic budget will mean the difference between making a smart investment and a risky investment.

  • Rent

Be aware of the market rate to ensure you will not be overcharged for rent. A space may have large square footage, but don’t be tempted to lease a property that is larger than you need. Larger properties will be more expensive to rent and maintain. Don’t waste your capital on a large space if it will go unused. Visit many different commercial spaces to get a feel for what you need and envision your business in the space. 

  • Utilities and Maintenance

The cost of rent is important, but also consider the cost of utilities such as water, electricity, and security systems. A building that has modern upgrades like energy-efficient LED lights will save you a lot of money in the long run. Older buildings may also require additional maintenance or pricey upgrades that can catch you off-guard in the future.

Understand Commercial Real Estate Terms

Knowing the terminology ensures you will know which agents are covering all the important aspects of transactions. While most business owners work with commercial real estate brokers, it’s still a good idea to have a basic understanding of how the process works. Here is an overview of two important terms from Investopedia.

The common key metrics to use when assessing real estate include:

  • Net Lease
    A net lease is a real estate lease in which the tenant pays, on top of his rent, one or more of the following expenses: property taxes, property insurance premiums, and maintenance costs. There exist three basic types of net leases. A single-net lease requires the tenant to pay only the property taxes in addition to rent. With a double-net lease, the tenant pays the property taxes and insurance premiums. A triple-net lease, also known as an NNN or net-net-net lease, requires that the tenant pay rent plus all three additional expenses.
  • Gross Lease
    A gross lease is a type of commercial lease where the landlord pays for the building’s property taxes, insurance, and maintenance. A gross lease can be modified to meet the needs of a particular building’s tenants. For example, a gross lease may require the tenant to pay the utility bills.

Consult an Expert

You’re in the business of building your business. Just as customers come to you because you’re an expert at what you do, you’ll want to find an expert in real estate. Hiring a commercial real estate agent to help you find the perfect property will increase your chances of getting the right property for your needs. A broker’s job is to help make your vision come to life. They will have knowledge of zoning compliance, traffic patterns, permits, financing, and all the other details that often get overlooked.

Searching for that perfect location doesn’t have to be a hassle and you don’t have to go it alone. Put your plan of action together, educate yourself on the lingo and reach out to one of Ullian Realty’s commercial real estate experts if you have any questions. 

Ullian Realty Brokers are Brevard County Florida Commercial Property Experts. Contact us today to view our properties.