You’ve probably heard the phrase tons of times, but do you really understand what it means for your business and your bottom line? Chances are, when you were searching for your new home, you probably knew what general area you wanted to live in, maybe a certain zip code, or maybe even a specific neighborhood. Just like choosing where you live impacts your lifestyle and family, choosing the location of your business impacts your success and profitability. Rich Commercial Realty has several tips to consider when choosing the best location for you to operate your business:
- Determine your needs. You must analyze both the short term and the long term as commercial leases tend to be longer commitments, especially in growing or strong markets. Each type of business has varying location needs. For instance, a retail business would require a location that provides exposure to certain customers. Will certain types of users be competing with you or will it compliment your business? This frequently comes into play with medical and dental users as location drives so much of their business. It is important to evaluate your surroundings. Would your business and employees benefit from a mixed-use environment? Would a prominent address on a well-known street or corridor be more fitting? Planning for future growth should also be considered. Does the building have extra space should you need it?
- Evaluate your finances. Consider the submarket that you want to be in. A downtown submarket will have higher prices per square foot associated with them versus an address just outside a prominent area. More urban environments may also require you to pay separately for parking which can add significant costs, especially for larger users. Is your space move in ready or will you need to include costs like renovating and decorating, data cabling, or the installation of specialized equipment? If you desire to be in a newer area with new buildings, you will likely have to fully upfit the space as the initial user. Whether it’s a new building or second-generation space, a good tenant broker will help inform you of all of the costs associated with your occupancy to help your business make a financially savvy decision.
- Think about your employees. Think about what would make your employees most happy. Is it important to have amenities like quality lunch options, gyms, and daycares within close proximity? Where do they live and how might a move impact their commute? Map out where your staff lives so that you may understand the highest concentrations and exactly which directions they are coming from. Is the location and the space going to attract new talent and be something that employees are proud of? You may consider the input of key employees or managers to ensure you keep your team involved and on board so not to lose them to a competitor in a relocation.