Things to Know Before Buying Your First Business Space
For business owners, there are many advantages to owning rather than leasing…
such as lower operational costs. If business is booming, it might be a good idea to start looking for a business space that you can own. And to help you do that…
…here are some factors you can consider:
Budget, size, and space
Create a list of the things that you need in a potential space. This will help you estimate the floor area and budget you need to carry out the work.
Afterwards, visualize how you can transform an empty space into something that represents your brand. Work Design Magazine emphasizes the importance of telling a story with your workspace, stating that ‘a brand is purely not a logo on a wall’. For instance, is it possible to create a zen-like atmosphere if you’re building a yoga studio? Think of how a few square feet can present a statement in line with your business’s branding.
Location, location, location
Where you choose to buy is just as important. If your business conducts face-to-face interaction with clients, you need a place that’s attractive, accessible, and safe. You also need to find a location with high foot traffic if you deal with retail or food & beverage.
Think of the demographic makeup. What sort of people visit the neighborhood? Are they your target market? Try to feel out the community as well. Is it a purely competitive neighborhood or are other businesses supportive of each other? As you may well know, Hatch Tribe is all about uplifting fellow entrepreneurs. This means that a supportive community would certainly be much better for a startup.
If you aren’t client facing, then you need to consider your employees and how easy they can access the office. It would be much better if the space is near parks, restaurants, gyms, and other establishments where employees can go to on their breaks. As the boss, The Balance points out that you set the tone for work-life balance. Being in a community that is conducive to that kind of dynamic will be a huge help. Lastly, consider its proximity to transportation systems and parking.
Like any other property, a commercial space is an investment. It’s best to consult with a team of experts including a commercial broker, lawyer, mortgage broker and an accountant. They will advise you on making smart moves but ultimately, the final decision is up to you.
Don’t be afraid to ask questions, one of which is on area developments, as SF Gate explains that future changes in the neighborhood might affect your business later on. Ask about hidden costs such as maintenance fees for common areas. Find out whether the building is a new development as well because it might affect the price you’ll be paying for the space. An article by Yoreevo states that closing costs for new developments are typically higher than resold spaces, with the addition of transfer taxes and the sponsor’s attorney costs. The rates vary depending on your city or state. Developers might not be upfront with these details so it’s crucial to do your research and ask, or let your broker do the talking.
This is especially true for Charleston, where commercial real estate is growing due to out-of-state investors and the arrival of people settling in the city. The Post and Courier reports that rising interest rates continue to affect the price of commercial real estate but the industry is expected to follow a positive trend this year. It could be the perfect window to purchase a business space of your own, while the market is still healthy, as real estate offers no guarantees.
Looking at the bigger picture
Before making an offer, think of the bigger picture. Do you see your business thriving in this particular community? Will this property be able to accommodate any expansion plans? Purchasing your first property as an entrepreneur can be a little intimidating. Real estate is always a risk, but it can be a wise decision that will pay off for your business.
About the author: Erika Gallo
Erika is a freelance writer and business consultant currently based in Raleigh, North Carolina. her clients are mostly startups and small- to medium-sized enterprises who need guidance in how to conduct different aspects of their business. You can contact Erika via email at firstname.lastname@example.org.