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How to evaluate a commercial property

Choose the right commercial property

Companies have a lot to digest when it comes to choosing the right commercial property. Not only do you need to evaluate whether the property is going to provide you with the space and facilities that you need for your business to function efficiently. You also need to consider the financial and leasing arrangements that the property offers to ensure they align with your budget and longer term objectives. What follows is a list of five things that will help you evaluate a commercial property from all angles to make sure you choose the best property for your business:

      1. Location
The location is a very important factor for the continuing success of your business. The right location can improve your company image, help attract the right sort of clients and keep your staff happy. Choose a location that’s most convenient to your employees and clients. If you are moving into a new location, make sure you familiarise yourself with the local amenities, find out what other businesses operate in the local area, what public transport facilities are available, and also whether there are plans for any new infrastructure (buses, new shops, business parks etc.) close by.

      2. Neighbours
Check out other neighbouring tenants, particularly if they occupy the same building as you. You may want to check out what industry they work in, and whether they compete with or complement your services. Economies of agglomeration; the benefits your firm will achieve by locating yourself near other businesses through economies of scale and network effects (healthy competition, firms complementing each other, etc.).

      3. Feasibility
You will need to be sure that the space will accommodate your staff, and also whether it will support your future growth plans. It may be worth having a feasibility study done to ensure that the size, configuration of space, facilities and style of building is aligned with your business strategy.

      4. Legal and financial
Find out the basic terms of the lease such as length of contract, monthly rent so you can plan your relocation budget and weigh up whether the property offers you the right financial terms for your business.

      5. Check the bathrooms
Check the cleanliness of the bathrooms. It’s amazing how many tenants sign leases without ever checking the bathroom facilities to see how well they are maintained. Always have an office fit-out company assess the space before you commit to anything. They can tell you how much usable space you’re actually getting and how much construction work it’s going to take to get the office you want before you start negotiating.

Use this Office Space Checklist to help outline and prioritise your requirements.

 

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