Selecting the right commercial real estate for your business can have a profound impact on your company both in purely financial terms and in terms of attracting and retaining the best and the brightest talent
From a financial perspective, rent is generally the second-largest expense (following employee compensation) in a company’s monthly budget. Selecting the right amount of space, the most efficient space, and incorporating contraction and expansion rights into your lease can be critical to a company’s future success.
Choosing the right space involves more than just the bottom line. For your employees, clients and vendors, your space creates the first impression they perceive of your company. Selecting the right aesthetics and design can boost employee productivity, moral and retention.
The typical office tenant only participates in the lease process every five to ten years. For small to mid-sized tenants who do not have in-house real estate personnel, the process of locating the right space and obtaining the best terms can sometimes be frustrating and somewhat mysterious. Before heading out to tour commercial real estate consider each of the following factors.
- Cost. While cost isn’t everything, it is obviously an important consideration. Savvy tenants prepare a budget before they start looking for space. Aside from your own budget you need to consider how expenses relating to the space will affect your customers and employees. For example, is parking free or do employees and customers need to pay to park? Will increased rental costs need to be passed on to customers?
- Customers. The space needs to be convenient for your customers, or it won’t work. If you are not in a convenient location for customers, you will lose business.
- Employees. In today’s tight job market and with the trend towards remote work it is difficult to get employees to come into an office period. If you select a location that is inconvenient for the majority of your workforce or the space is dingy, cramped or dated you will have difficulty attracting and retaining top talent.
- Strategic partners. Are you in a field like tech where strategic partnerships are valuable? If so, you may want to locate your business near potential partners.
- Cachet. Would a ritzy address add credibility or attract wealthier or more established clients? If so, the additional rental expense may be well worth it.
- Traffic. If you have a retail business, a highly trafficked area is critical for success. If you are an office user, it’s more of a nuisance.
- Convenience. Is the space easy to find? Is there adequate parking close by? Think of customers and employees.
- Safety. How safe is the neighborhood? Is the parking close by and safe at night? Does the property have security and key card access?
- Facility requirements. Does the company have any special needs, such as high ceilings, higher than average power consumption or require a loading dock?
- Zoning. Many cities have zoning requirements that restrict certain businesses from operating in a particular location. It is important that you verify that your use is permitted before you sign a lease.
Before you start the process of looking for commercial real estate for your business it is important to consider all of the items mentioned above.
At Mobiliti CRE we focus 100% on representing tenants with office relocations, expansions, contractions, and subleases throughout Tampa Bay and the entire West Coast of Florida. We also assist businesses that are looking to purchase office, medical office, industrial, and retail space as well as commercial real estate in Tampa. Reach out to us for assistance with all of your commercial real estate needs at (813)-300-2227 or email us at firstname.lastname@example.org
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