It’s daunting looking for a commercial property on a budget. Maybe it’s your first commercial premises, or perhaps you are considering a move to a better location or building and need lower rent. In both cases, the stakes are high when funds are low.
It pays to be savvy when you are looking for new premises. Once you’ve committed, it can be a real hassle to move. It also can hurt your business to move frequently since your customers need to be able to find you.
So, how can you secure business premises on a tight budget? Here are some tips and tricks.
Look for Properties that Need Work
It’s a bit like renovating an old or dilapidated house. Commercial rents are cheaper on buildings that are in poor condition. There is another benefit too.
Fitting out a building yourself allows you to do bespoke building so that it perfectly suits your business needs.
Before committing to a commercial lease, ensure you or a professional thoroughly survey the property. You need to know that it has all the services and utilities you need and how much remediation work will cost.
There may be preliminary work that has to take place if the building has been unoccupied for a long time. It might involve some essential structural work to ensure the building is safe and vermin control.
A licensed vermin controller will know what the best rat poison is depending on the scale of the problem.
Spot a Bargain
In the current economic climate, plenty of commercial property owners are looking to liquidate some assets.
It might involve getting rid of a building in poor repair, but equally, it can involve selling less than profitable premises.
Many commercial organizations act as a property hub to source these types of buildings. Invariably, they take their cut, and the cost to you is not as attractive as it could be.
Go under the radar. Find premises that you think would work for your business, determine who owns them, and then approach the owner directly. After all, you’ve nothing to lose. If they agree to a quick sale, both parties can save costs.
Know Where You Can Compromise
There is plenty of valuable guidance out there which can help you avoid some of the many pitfalls. It’s easy to see dollar signs if you find cheap premises. But what happens if you realize too late that the location is a real problem for your business?
The important thing here is knowing where you can and can’t make compromises. Your budget matters, but nothing matters more than your business and the income that keeps it afloat. Don’t move into a cheaper place if it will mean you lose all your customers.
The Sharing Economy
The concept of the sharing economy has worked well in the private sector. Zipcar and Airbnb are testaments to that. This principle applies equally to the commercial sector.
Finding someone to share premises can be the best or worst of all worlds. Choose wisely and nail down all the legalities in the commercial agreement.
Final Thoughts
There are lots of options when it comes to lowering the rent on commercial premises. Don’t take anything at face value and do your research—there are bargains out there.
