How, Why and When to Purchase Retail Space
There are many great things about purchasing a retail commercial space as a way of generating more income for your business. Here is a quick guide about buying commercial retail space: the benefits, what to look for, and financing.
Benefits
- You are expanding your business
- You will no longer be subject to rent if you currently are doing business in a commercial space
- You can find a space that is tailored to your needs or tailor a space to meet your needs
- You can find the perfect location close to your target market
- Save money over the long run and maybe even make you money
- Helps create more accurate business projections because you do not need to factor in changing rent
- Additional income if you purchase a space large enough to lease to other businesses
What to Look For
Different businesses have different operating needs and because of this there is no one space that works for every business. You will need to consider what business activities you will be conducting in the space and what the needs are to carry those out in a professional and top quality matter. Here are some things to think about when looking for just the right space:
- Customers: What is your target marketing audience? What are the needs, habits and behavior? What about other demographic information? When you choose a retail space you will want to look at properties in the areas that your target audience likes to hang out and shop. What areas are geographically convenient for them and what would offer them an enhanced shopping experience?
- Location and Accessibility: Make sure that you will also be purchasing a space that is in a safe area with stable growth. You don’t want to be too far from other retail businesses, colleges, offices and other busy public areas. You will also want to make sure that your new store front is easily accessible to customers with parking nearby.
- Competition and Complimentary Businesses: Consider setting up shop near to a competition in the same line of business. If they are doing well this can only be good for you and them. They will have customer traffic that is interested in your product bringing traffic to your business. You can also set up shop near businesses that compliment yours for example if you run a bakery you may look to purchase the open space by a coffee shop.
- Size, Condition, Floor Space, and Amenities: What are items that would be good to have in your space in order to stay organized and operate smoothly? Will you need a sizable storage space? Do you need an office space perfect for meeting customers, but with a small kitchenette for being able to provide refreshments? Do you need a small space or a space with plenty of room for future growth? Request a floor plan and if you are hoping to renovate make sure your future vision for the space is possible.
Finances and Other Things to Consider
Purchasing a property is more than just finding financing and paying the purchase price of the building. As the owner of the property you will be responsible for mortgage payments and property taxes as well as repairs, renovations and tenant concerns if you have any. You also want to make sure the space you purchase is properly zoned for your type of business.
Another great thing to do is look into your capability to continue mortgage payments over the long haul. What happens if business is a bit slow? Will you still have plenty of money to pay the mortgage and keep the lights on to keep conducting business until it picks up again? Review your business plan and projections to see if you have a good customer base and planned growth to afford the purchase. If you decide that purchasing is definitely the next step to take in the growth for your business you will want to start searching for that space that is just right.
More on Commercial Real Estate:
For more information on commercial property in Minot and surrounding areas please browse our website or contact us anytime. Also, feel free to send us a comment below.
