Finding the Right Property: What Every Business Owner Should Know

As a business owner, finding the right property for your business is both an art and a science. Successfully matching tenants with the appropriate property requires market knowledge, meticulous planning and budgeting, strong negotiation skills, and, most importantly, asking the right questions. Here’s how to navigate the process effectively.

Understand the Needs of the Business

The first step in finding the right property is fully understanding your needs. This includes the must-haves, nice-to-haves, and absolute no-goes. A few, though certainly not all, of the factors to consider are as follows:

• Is the business best suited for a retail, office, industrial, flex, or medical space? Sometimes, a company falls into more than one category, which might give them a few more options to consider.
• What size space do you need? Do you need room for growth and expansion or space to accommodate only your current needs?
• The importance of location depends on various factors, such as visibility, zoning uses, traffic, proximity to bus routes, foot traffic, and even complementary businesses that can refer to, relate to, or otherwise collaborate with your company.
• What is the budget? If there is a planned growth phase, is there a cost phase that might be important to consider? What’s included in the rent versus what the tenant will need to pay in addition to rent? Being prepared to create budgeting spreadsheets to illustrate the economics of the leasing decision is a crucial role in the decision-making process, and working with the right real estate professional can make this a breeze.
• The length of the lease is another crucial decision. If rapid growth is anticipated, the capacity to expand or relocate becomes essential. The lease term is directly linked to the stage and requirements of the business, so it’s important to consider how long to remain at a single address.

By gathering detailed information about priorities, a real estate professional can refine the search to properties that align with those goals. If you want to relocate, ask your real estate professional to give you a questionnaire or request one from AushCo.

Market Research and Property Selection

Once a business’s needs are clear, the next step is identifying available properties that fit those criteria. 

• Having access to the right information is crucial. AushCo utilizes four primary sources of available properties.
• Do the building amenities match the businesses’ “must haves” from the questionnaire?
• Given market conditions, is the building fairly priced, and are the economics aligned with the business’s budget?

An understanding of the market and the business’s needs ensures that the tenant’s time is spent wisely, considering available properties and getting the best value for their investment.

Go on Property Tours

Property tours provide tenants with a firsthand view of potential spaces. It is essential to consider all the necessary features that contribute to the property’s functionality. Some elements to consider during the tour include:

• HVAC, electrical, and plumbing systems. Is the HVAC serving only the space being considered, or is it a full-building system? If the business has specific high-power needs, does the building have the capability to provide them? Is the plumbing adequate?
• How is parking handled? Is it free and unreserved? Is there public parking nearby? Are there adequate handicapped spaces (which are very important for medical practices)?
• Is signage available to all the tenants in the building?
• Considering who else is in the building is another important factor. It may not be beneficial to have a competitor in the same building.
• Traffic. It’s always wise to drive to and from a potential property during peak hours. This helps assess how easily employees and customers can access this new location.

It is crucial for businesses and tenants to visualize their business operations in the space while keeping in mind all the nuances that are required and desired.

Negotiate Lease Terms

After identifying a suitable property, the next crucial step is negotiating lease terms. Key lease factors to consider include:

• Is the rent structure triple-net (NNN), full service, or something else? Does the rent escalate, and if so, by how much and at what times? Lastly, it’s essential to know what is included in the rent and what the tenant will have to pay in addition to it.
• Determining the length of the lease depends on various factors, including what the landlord will accept, the duration the business wishes to stay, and whether any improvement or remodeling funds are being allocated that might be more cost-effective to distribute over a longer term.
• Are any modifications required to make the space suitable for the tenant, and if so, who will pay for them?
• Understanding the market rental rates, lease terms, escalations, free rent, and other concessions in the area is highly beneficial for negotiating the best deal.
• Knowing who is responsible for maintenance of the HVAC, plumbing, and electrical systems and who pays for them is an important decision regarding lease compliance and overall costs.

A well-negotiated lease benefits both the tenant and the property owner, ensuring a fair and sustainable agreement. Grasping the terms of this document is essential for understanding the costs, responsibilities, and success in the new location.

Work with Experts

Finding the right property for a tenant requires expertise, market knowledge, and careful negotiation. At AushCo, we specialize in connecting tenants with ideal commercial spaces that meet their business needs and budgets. By understanding tenant priorities, conducting thorough market research, and negotiating favorable lease terms, we help businesses secure spaces that support their long-term success.

For expert guidance in finding the perfect commercial property, contact AushCo today.