Rent and mortgage payments are two of the most expensive line items for your business. They rank right up there with staffing expenses. The location and layout of your space can significantly impact the productivity of your staff and your partners' and customers' perceptions of your brand. Let's take a look at some important considerations when selecting a business location.

Lease or Own?

It is an important decision to make. When deciding whether to buy or lease your space, there are many factors that you should consider. These factors include your capital requirements, flexibility, mobility to accommodate business growth, tax implications; risk tolerance,, and space availability. You also need to consider your aptitude and interest in managing and maintaining your property.

Location, Location, Location

Strategic considerations should guide your choice of business location. Are you close to decision-makers, your employees to cut commute times, and your customers? This question depends on many factors, such as the size of your business and its type. You should consider the importance of adequate parking and zoning early on in your planning process. Let's take a look at some examples from a variety of small businesses:

Financial Services:

A location near a financial hub, such as downtown, is a good choice, especially when you interact with other businesses or the high-profile image that a class "A" building can project. Service firms that are smaller and have a high level of public interaction may prefer to be located near their customers on an arterial in suburban areas with prominent signage.

Medical clinic:

Although many specialties and practices have strong relationships with hospitals and are strategically located near inpatient campuses, many clinics are moving into residential areas to be closer to their patients.

Restaurants:

For food establishments, visibility is important. They choose high-traffic corridors or locations near restaurants to foster synergy. Cross-traffic is often more important for retailers and restaurants than it is for their own businesses.

Logistics Company:

Wholesale businesses or distributors may value proximity to transport corridors. This reduces the time and costs of moving goods. This could be a location near an airport. Others may find it important to be close to the highways. They might use access corridors, airports, or inland ports as a way to distribute their goods.

Sole Proprietor:

Your options may be greater if you are an independent contractor. After considering the pros and cons of working remotely, executive suites may be an option. These include coworking spaces, support services, and areas for sharing input with other entrepreneurs.

Attention to the Details

Who pays for the space, whether it is for lease or sale? Buyer or seller to pay for the environmental assessment and survey? Who maintains, repairs, and replaces the air conditioning systems in a lease agreement? What is the difference between a triple or triple-net lease, a modified gross lease, and a gross lease? How is a base-year lease administered? You could end up paying more than the market if you renew an existing lease and don't ask these questions. Is it always a good idea to get the shortest term possible? It gives you more flexibility, but there could be market reasons for you to extend the term.

Commercial Real Estate Subspecialists

It is a smart decision to have your business interests protected. The buyer/tenant's representative is paid from the seller/landlord commission to their own representative. This is similar to buying a house. However, there is no incentive to do it all alone. Expert leasing agents are able to specialize in certain sectors, such as industrial, retail, or office. They also have access to market data to help you make the right economic decisions for your transaction. They are also familiar with the reputations and management styles of landlords and will help you minimize disruptions.