How To Select The Right Location For your Business
Shopping for commercial real estate in Nashville can be as exciting as it is confusing. There are so many factors to consider that it is easy to overlook something important. Your commercial real estate broker is there to assist you through the process so hopefully nothing falls between the cracks, but it’s a good idea to have your priorities set before you start looking. So here are some factors you should consider before looking at commercial real estate and even after you have seen some properties.
Buying or Leasing
The first consideration you need to make is if you intend on leasing or buying commercial real estate in Nashville. This will drastically change your options for potential locations. You should consider your options: How long do you intend to stay in a particular location? How much are you looking to spend? Do you have the upfront capital required for a purchase? These considerations will narrow down your scope of possibilities. Taking a realistic assessment of your financial capabilities and future plans will give you your best options for types of transactions.
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A realistic look at your potential payments and income will give you an idea of what you can afford. There might be a temptation to push your budget to the limit with the goal of securing a potentially more attractive location, but this isn’t always the best idea. Your budget is a good idea of what you intend to spend and make, but it isn’t set in stone. Expenses can be unexpected and if you’re spending too much on your lease, you might not have the required funds to cover them. You don’t want to handicap yourself by paying more than you can afford for your location.
This will factor into both purchases and leases, although it will affect leases more directly. Taxes vary drastically from one location to another based on many factors. These taxes are also liable to change as the area grows. Those looking to purchase a property will have these taxes directly affect how much they will pay on a monthly basis for their location. Leases often have these taxes factored into the monthly rent, which is likely to change as the taxes for an area change. Look into the area’s potential for growth and weigh that against how that will affect both your potential for income as well as the potential for an increase in monthly expenses.
Is the location ready to move in and set up shop? Or will it need some remodeling to fit your specific needs? Commercial real estate might be plentiful in Nashville, but it can service a number of industries. This adaptability means you might need to do some work when you move in. Consider how much work needs to be done, what it will cost to do it, and how that factors into your budget. A location that doesn’t require much work will leave you more money for a down payment. Conversely, a location that needs to be drastically re-worked will cost more capital upfront.
Will your customers be able to easily find parking? Does the neighborhood support businesses like yours? Is it easy to find? These questions should be factored in when considering how your customers will access your commercial space. It could be a beautiful space but no one will come if they can’t get there. Likewise, people aren’t likely to stumble upon your business if it’s in the middle of nowhere. You want to find a happy medium between a location that is cost-efficient and in an area that will support your goals.
Potential for Growth
Your business has the potential to grow. Does the location support this potential? There’s always more space to move into, more services to provide, and more chances to expand your earning capabilities. Commercial real estate that allows for expansion and adaptation is a great asset. Consider how your real estate options can be re-worked as you grow in the future. The need to expand will differ for various industries, so weigh how important this will be to you as the years wear on. Having this option in your back pocket could be a great asset when you find yourself ready for the next phase of business.
Southeast Venture is an experienced commercial real estate broker in Nashville. Visit us today to see how we can help you find the perfect location for your business.