The commercial space that you go for greatly affects the success or failure of your business. The overall size, appearance, design and layout must have the potential to better the scale of your operations in relation to zoning laws as well as environmental regulations. Commercial spaces come in different sizes and shapes, prices and you can find them at various locations in Toronto.
Renting commercial space can help you save your working capital precisely for your business utilities. You will benefit the most by opting to get authentic advices from an expert commercial real estate advisor who is independent. He or she must have a broad knowledge base on the commercial spaces you intend to select from and must be aware of all zoning regulations of the particular areas in which they are located. Here are helpful tips to factor in when considering buying or renting commercial spaces.
• Does the location require modifications?
Once you have located an ideal location with the help of a real estate broker, it is sensible to integrate a few tweaks here and there to make the space just perfect for you, your customers and employees as well. Therefore, the major question to ask here is who will be responsible for the modifications. Ensure there is the existence of a contract specifying the modifications or the improvements that have to be done. Such provisions must be clearly outlined in the lease.
You could also hire a certified inspections service to come and investigate the space for any defects in the building’s systems and for any environmental contaminations. Keenly note that these defects can serve as critical negotiation points with the property owners. However, the landowner might be restricted from doing certain renovations to the property as they may be tied down by zoning laws or regulations of the area.
• Taxes and infrastructure
Taxes charged on various commercial spaces vary from one location to another. Your broker must be aware of all tax rates in your preferred location, if it has good infrastructural amenities and utilities such as internet connectivity networks, communication networks, garbage collection services and electricity.
• Allowance for future growth
It is always great to go for a space with room for future expansions as your business continues to grow. Before setting out to cater for future expansion space, it is good to determine if you will sure need that space after a short while. Commercial advisors will come in handy in advising you whether your business will be able to afford costs for the extra space in future.
• Rent agreement
It is crucial to agree with the property owner concerning all matters relating to rent and all other costs. This is because many businesses later find themselves trapped in unseen rent increments. You can avert this by including renewal options in the contract, as well as ample warning time for rent increments. You should also discuss and document all costs pertaining to the premise; to avoid being presented with bills of other costs that you are not aware of after moving into the business space.
• The most ideal location
If in search for retail space, it will do you good to ensure that the commercial property has enough parking spaces and can handle pedestrian traffic. It should be appealing as well in terms of décor if you are to impress you clients and business associates. For industrial and warehouse spaces, décor features are less of an issue and you will only be required to channel your business regulations in line with the business operations in alignment with zoning regulations. The areas should also be labor friendly in terms of mobility.
If you are dealing with professional services that are personal, consider closed spaces that have eye-catching surroundings with topnotch road networks for both private and public vehicles. To maintain your customers and access labor easily, you need to consider a centralized commercial space.
• Separate your business needs from wants
The commercial real estate market might overwhelm you with office space possibilities. After sampling various options, create a list with detailed information of the space features that your business dire needs. With the assistance of the list, eliminate the spaces or buildings that do not have feature that address what your business truly requires. Rank the rest of the spaces you have sampled in accordance to how best they meet your business needs then settle on one that you consider most appropriate.
Purchasing real estate is a daunting transaction that your business will make; hence, it is crucial to plan as well as budget for it effectively to meet the financial demands that come with it in a stress free manner. Long constructions, remodeling projects alongside the big business move may have a heavy toll on your business margins as well as operations.
However, commercial space advisors have observed that the greatest mistake that businesses make when it comes to purchasing commercial property is that many are completely unaware of how lengthy the process is and more often than not draw their attention from the business goals and objectives stipulated in the business plan. This is why every business owner must consult professional real estate advisors before commencing on the process.