How to Find a Commercial Space
Ready to expand your business? If you’re in the market for a new commercial space, it is essential to understand the steps in the process.
Commercial real estate is very different from residential real estate. Without proper education navigating commercial real estate can be a challenging experience, however, it doesn’t have to be that way. If you know where to look for commercial space and are able to find a great commercial broker to work with, finding the right location for your business can be a smooth, straightforward process.
Here’s everything you need to know to help you find commercial space for your business.
Know the Basics
As you begin looking for the right space, be sure and collect the following information about each space you consider:
- Location: What is the neighborhood like? Are there similar businesses in the area? Is it an up-and-coming neighborhood? Is there room for growth? You also want to consider accessibility for your employees and customers when considering locations.
- Price: How does this space fit in your budget? Remember that you may have more expenses than just the purchase or lease price. You may need to hire a commercial contractor to get the space ready for your needs. If you are purchasing, keep property taxes in mind as well.
- History of the Unit or Building: Try to gather as much background about each space as you can. Look for everything from who owns it currently, how much they paid for it, previous damages or upgrades to the building, and any applicable tenant information.
Working with a Commercial Broker vs. Self Search
There is plenty of great commercial Real Estate available, and your first step in finding the right location is to know what resources you need to find the right space. You have two main options – you can work with a qualified commercial real estate broker, or you can self-search to find the right space.
Self-searching is usually not a great option but can be necessary if you are on a tight budget, and have a good idea of what kind of space you want. If you would like to begin self-searching for your commercial real estate space, LoopNet is a great place to start. LoopNet is the most well-known and reputable commercial real estate property search site. You can filter by city and property type to find listings that suit your criteria in your desired area.
Working with a commercial broker is usually the best route. Generally, there are two types of commercial brokers: leasing agents who represent landlords looking to rent their commercial spaces whose commission is paid by the landlord, and tenant brokers who represent tenants and whose commission is paid by the tenant.
A broker will help guide you through the entire process. First, they will help you to identify the features and type of space you need. Once you have found a space, they will help with negotiations, and make sure you get the best deal possible. If you decide to work with a commercial broker, The Broker List is a good place to start to find the right fit for you.
Hiring a Commerical Contractor
Once you find your new commercial space, it’s important to make sure that space is ready for use. Working with a well-qualified commercial contractor makes any necessary renovations or remodels needed for your new space a breeze.
It is important to engage your commercial contractor early in the process while you are searching for your new commercial space. Keep an open dialogue about the changes or renovations that need to be made to your space throughout purchasing or leasing. We recommend having commercial contractors do a walk-through of your new space before you finalize your leasing agreement or purchase to ensure the upgrades and accommodations you want to make to your new space are possible and feasible for your budget. Your broker may even be able to use a commercial contractor’s bid to negotiate a lower price.