Finding the Right Location for Your Business
Starting a new business or relocating an existing one?
If you are relocating an existing business, you probably have a good idea of what your basic needs are. If starting a new business then the challenges are greater and can often be confusing. In either case, before starting your search for a location for your business, you will need to think carefully about the kind of location and building that will best suit your needs, the maximum price you’re willing to pay, and set other priorities, such as the size and configuration of the space
Should You Lease or Buy?
First and formost, this decision is dependent on your ability to pay the up-front costs and obtain financing involved in a commercial real estate purchase. Keep in mind that buying is going to cost you a lot more upfront than leasing. You must ask yourself the following questions;
"Can you afford to tie up a large amount of money in the down payment for a mortgage?"
"If you can afford it, would that money be better spent if invested in growing your business?"
"Will you outgrow your space and need to move to a larger location in the next few years?"
"Do you want to deal with the hassles of maintaining the property?"
Another major consideration is how long you are planning to stay in the same location. The math usually works out like this...If you plan to stay in the same business location for 7 or more years, then buying is generally less expensive than leasing. If you work out the math, leasing will usually cost more than buying over a 15 year time period, 7 years being the break point. And if you have held the property for a period of 15 or more years then you can build a considerable amount of equity as well.
Choosing an Experienced Broker to Represent You
We always recommend that you retain a Commercial Real Estate Broker to represent your interests. You say "Of course they recommend this because they want the business!" And the truth is "Yes we do!" But be aware that Commercial Real Estate transactions can be very complicated, protracted, and frustrating. Should you decide to use the services of broker's representation, then here are some things to look for;
Commercial Brokers and Residential Brokers are "not" the same..."not even close". Expertise and experience in Commercial Real Estate is essential, and the best Commercial Real Estate Professionals specialize in this area. Make sure the broker you choose is experienced in helping tenants find office, retail, and other commercial space (not someone who works primarily with selling houses, condos, and apartments). (Hint: The Mark Staples Team at KW Commercial is a good choice for your Commercial Real Estate Representative)
Look for someone who’s been practicing commercial real estate in your geographical area long enough to know how deals are done and how Landlords, Sellers, and their Brokers work. (Another Hint: Established firms often have the inside scoop on an available property that is not being advertised)
Very Important... Before going to work with a North Carolina Commercial Real Estate Professional, always make sure that you have read and acknowledged (signed) North Carolina's required document "Working With Real Estate Agents Brochure" and also an "Exclusive Buyer/Tenant Representation Agreement" which spells out the details of both the Broker's and your responsibilities.