Top tips for choosing the right business premises

Choosing the right location can be vital to the success of your business, and this is an even bigger decision in the post-pandemic environment. 

"We've seen huge changes in commercial property trends," says Berry Everitt, CEO of the Chas Everitt International property group. "Lease structures are different, spaces are being used in innovative new ways, and some businesses are implementing hot-desking or sending employees to work from home on a full-time basis." 

With operational needs changing, businesses may need to rethink their criteria when it comes to finding the right premises. Here are five things to consider. 

Your business requirements 

Start by making a list of all the essential requirements of your business. The clearer you are, the less time you'll waste looking at premises that are unsuitable. 

Things to consider include:

• Size. How many employees are working in-office?

• Layout. Want meeting rooms or need storage space?

• Access. Getting deliveries outside of work hours? 

• Facilities. Need a staff kitchen or a commercial shed?

• Structure. Are future renovations possible?

• Infrastructure. Does it have hi-speed internet and smartboards? 

• Security. Will your employees and assets be protected from crime?

It's also important that you not underestimate how quickly your business may grow out of your premises. Think about your long-term goals and what you need from your premises to get there. 

Consider your budget

What can you realistically afford to spend on your business premises? In addition to your monthly basic rent or loan repayments, you need to budget for operating costs such as municipal rates, utilities, insurance, Wi-Fi and cleaning. You also need to factor in moving expenses, potential downtime or business interruptions, and any additional renovations you want to make to convert the new space to meet your specific business requirements. 

Buying vs renting 

One of the most important decisions to make is whether you want to buy or rent your business premises. There's significantly less initial capital outlay if you choose to rent and it gives you the flexibility to move when your contract comes to an end or you've outgrown the space. This may be a good option if you're a start-up. 

However, buying also has its benefits. You have the freedom to renovate as you choose (with relevant permissions), you have the option of letting some of the space and earning an income, and if you increase the value of the property you can sell it for a profit at a later date.

Choosing a location

It's a balancing act to find the ideal location. On one hand you must consider things like footfall, business rates and competitors, and on the other is your budget. You can make necessary changes to your premises but once you've signed on the dotted line, you can't change where it is. 

• Do you need to be close to suppliers?

• Is your business online or not open to the public?

• Should the other businesses in the area complement yours?

• Will your employees be working from home?

• Is high footfall a necessity?

• Will the area affect your company's image?

• Are there delivery or parking restrictions?

• Can your business grow with the location?

• What are the property rates in the area?

Do your homework and find out as much as you can about the area and its future. This will help you make an informed decision. 

Legal considerations

Whether buying or renting, there may be legal obligations that you need to be aware of. Health and safety, fire regulations, disability access, insurance, licences and accessibility are just some things to consider. In addition, there may be zoning regulations that restrict the type of business that the property can be used for. 

Any renovations you choose to make may also require planning permission, so it's key that you consider your current and future needs before making any decisions. Get advice from a lawyer to ensure that you comply with any regulations or the terms of your lease.

Whether buying or renting, you can start your search online and go on virtual tours in the neighbourhood you're interested in. But, finding the right location faster is easier with a qualified and experienced estate agent or broker on your side. 

With insight into areas and available premises, we can match your requirements to the ideal space. Chat to a Chas Everitt property consultant today.