If you’re buying or leasing business space for the first time, there are some things to consider to help you make a quality decision. From deciding whether to buy or lease, finding the right location to ensuring the property is safe, the more homework you do the better the outcome. I do also recommend that you consult with a realtor and business professional before finalizing any plans. Here are some of those important considerations.
What Is Your Present and Future Budget?
One of the first things to consider when you obtain business space for the first time is your budget. Keep in mind that your current budget may not be the same as it is in the future. It could go up or it could go down. If you have the type of business that has high and low seasons, such as retail, don’t match your budget to the high months. Instead, go conservative to make sure things don’t get too tight during slow periods. Do also know all of the monthly utility and maintenance averages for the building so you can account for everything.
Additionally, if you’re getting into a lease, make sure there is no payment ballooning down the road. This type of lease is common and can throw a business off if it is not prepared for it. You will less likely deal with this type of increase with a fixed mortgage but could still deal with tax hikes. The best thing to do is write down the maximum amount you’re willing to pay for each individual aspect of your move, ensuring you’re not facing any surprises during the process. Here is a guide to setting a budget as a business.
What Location Suits Your Business?
Another important thing to consider is where you want your business to be located. If you already have team members, you may want to consider somewhere that is going to be easy for them to get to. If not, you could simply choose what is most convenient for you.
If customers and clients are visiting your location, you also need it to be convenient, safe, and attractive. I recommend doing some market and demographic research for your particular business in order to choose the perfect location. Here is a guide to choosing the right location for your new office.
How Much Space Do You Need?
Once you know where you want your business, it’s time to think about how much space you need. Whether you need space for production or just your team members, it’s important you take future growth into consideration. Your business plan should have the projections you need to make this type of assessment. If it doesn’t, now is the time to work through where you want to be in the years to come. Some leases are five even ten years, and a mortgage is much longer. You don’t want to be stuck somewhere that no longer meets your space needs down the road.
Safety and Health
A large part of your decision needs to be weighed by the level of safety a building or space has. I recommend hiring your own inspector before you lease or buy. Additionally, does the building pass health standards for things like radon, mold, asbestos, lead, etc,? Pre-sale or lease testing for these hazards may not be standard practice in your area, so they may be your responsibility. Though the cost would be upfront of your signing a lease or purchase agreement, it’s a good idea to know what you’re getting in to. If you’re unsure, you may want to consider hiring a site safety manager to help.