Deciding on property specifications makes the first phase. The reason is simple. It is an array of commercial properties. This range serves all money-making activities. Deciding specifications expedites the search. Suitable property becomes available efficiently. It is one benefit. Bear in mind the following five parameters. This phase requires this remembering.
- Ideal Customer. Alternatively, it can be the employee pool
- Deciding Zone for Commercial Properties
- Required size
- Maximum funds availability
The following shines the aforesaid. These are parameters of commercial properties.
Ideal Customer or employee pool
Ideal customer is very important. Employee pool is similarly important. It is the first and foremost parameter. Understanding it is compulsory. It entails some particular companies. Those need visitors in person. Some examples will help here. These will describe it better. These are; restaurants; retail businesses; beauty saloons; and likewise. One particular information bit is necessary. It is whereabouts of customers.
Take the example of a restaurant. It is a fast-casual restaurant. The commercial property is resturant’s first need. Its area should demonstrate a particular feature. Residents should love fast-casual food. There is another example. It is Michelin Star restaurant. Michelin Star is moving to another area. The moving objective is simple. It eyes at richer customers.
Office needs are different here. Location preferences change here. A different viewpoint influences location preference. It is the workforce accessibility. It should be convenient. This finding needs an analysis. Ideal area should provision ideal employees. There are relevant examples. Silicon Valley exemplifies it. Technology is another example.
Zones for Commercial Properties
There are various zones. Every zone has a specific Commercial property use. Take the example of warehouses. Warehouses make one form of commercial properties. This category serves industrial purposes. There are further commercial property categories. Leisure, eateries, retail outlets, and offices are some fine examples. In other words, zones decide functional types of businesses in their buildings.
Take the example of an office space need. That company cannot lease property in zone specific for retail businesses, eateries, etc. There are further don’ts. A lessee cannot convert properties in office-specific zone to establish restaurants. Clear standing becomes important here. One area is Zone rules and regulations. The other area is a Zone suitable to business needs.
Obtaining these information bits is easy. Contacting nearby chamber of commerce is one method. Availing Google Search Engine is the other. Google provides sufficient information. All Google needs is a Zip Code, zone name, or city name. This passage will provide an example. A particular discussion will bring it. The discussion is about two things. Commercial requirements make the first notion. The second is about Best practices. These relate to store front signing.
Commercial leases carry many options. Many factors influence these options. Two influencing factors are vital. These are size and layout. Finding size requirements is easy. Find the count of expected customers. Or find number your business will handle. Or, find the number of workforce. The required area will appear.
There is an example. 15sf area suffices one customer. Similar ratio applies to workforce. It is a typical estimate. It applies to Restaurants and Retail points. Said formula provides basic figures. The workforce area need grows in offices. An office-based-employee needs 100-to-150sf area. It is about usable area. It is a typical estimate.
Calculating area is quite simple. A retailer or restaurant business needs knowing customer count. Then, allot 15sf to each customer. Sum all area. The same applies to offices. But, the yardstick is longer here. It is 100-to-150sf. The commercial area requirement appears consequently.
Find how much you can spend a month. Make a budge first. Budget will resist extra spendings. This information combs affordable options only. Two factors decide budget range? One is your business scope. The other is your performance.
Finding one square foot price is necessary. It is helpful too. Its typical formula is easy. Divide lease to rented area. It will show the cost. There is another method. It involves Loop Net’s Directory. It mentions commercial properties to let. Input the zip code in Loop Net’s directory. The price of one square foot will appear.
Multiply the price with space requirement. This multiplication calculates the budget. It will be the (leasing) budget of that business. Divide this commercial lease cost on 12. This calculation will reveal monthly liability. There comes another add up. It is about two costs. Expected utility bills comprise the first cost. CAM fees comprise the second cost. CAM abbreviates Common Area Maintenance. Do consider these costs. Include these in your budget. Estimating utility cost is easy. There is a practical method. One square foot costs $2 per annum. Estimating CAM charges are easy too. There is a practical approach. It is 15% to 35% of the lease payment.
Furthermore, costs need consideration . These can relate to Build Outs. Annual rent increase is a fact. Estimating build outs cost is simple. This cost relates to business type. The lessor can share it. It depends on mutual understanding. Estimate a 3% increase per annum regarding rent increase.
Remember a few cautions here. It is managing the budget. Budget shouldn’t pass eight per cent of annual gross income of your business. Financial troubles may emerge if budget crosses 8% mark.
This aspect too is important. Two businesses raise accessibility importance higher. Restaurants comprise the first category. Retail makes the second category. Sufficient parking is necessary here. Visitor count is vital here. The location should be suitable. These businesses need two things further. Profiting in retail and restaurant businesses require a high volume foot and vehicular traffic. It is another must here.
Finding adequate parking areas is simple. A practical method helps here. One parking spot serves three customers. But, calculating traffic is complex. It is generously rewarding too. An article guides here. Foot traffic calculations shed difficulty. That article eases location finding.
Guidance helps cherry-picking a restaurant location. That guidance also shines property parameters. It is simple. Better location shines business prospects. There is one beneficial consequence. Leasing commercial properties becomes easy.