Things to consider when looking for commercial property
Finding the right commercial property for your business can be more complicated than you think.
A location that seems spot on might throw up challenges and problems you’ve never even considered, so it pays to be diligent to avoid being caught out.
Here are some of the outside forces to be aware of when you think you’ve found the perfect place.
In the zone
While you might think a certain location could be ideal for your operation, sometimes the local lawmakers don’t quite see it that way.
You need to check that council zoning regulations allow for your type of business, as well as ensuring that health and safety regulations can be met.
Check that council zoning regulations allow for your type of business.
Malcolm Gunning from Gunning Commercial says it’s an area that eager business owners often overlook.
“In a lot of cases, you’ve got to comply with other regulations. The health act, for example, and then you’ve got council compliance and insurance compliance,” Gunning says. “The use may not fit into the zoning. If it doesn’t pass a fire inspection, you won’t get insurance, and getting that insurance that might be a part of your lease.”
It’s important to note that zoning and other laws often vary between municipalities, so make sure you seek advice.
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Room to move
No one starts a business hoping that it never grows, but will your premises be able to handle that growth when it happens?
Gunning says that restructuring an office to accommodate extra staff is among the easier ways to expand, but businesses that may eventually require space for more equipment need to plan for that eventuality.
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“Retail and office are the easiest. If you’re selling dresses, you pack up and move on. When you get those more intense uses, that’s when the other factors come in,” he says.
“If it’s fabrication, for example, you’ve got truck deliveries and you have to make sure that if you grow your business and you start to get larger deliveries, that you can get a semi-trailer in and that semi-trailers are even allowed down your street. The roads have ratings, and if the road is not rated for an articulated vehicle, you can’t get in or out.”
If you’re in an industry like fabrication, you need to plan for the eventuality of needing more space for equipment.
Access all areas
Pellegrini’s Exprosso Bar in Melbourne has enjoyed good loyal business for over 40 years
Hope for the best but plan for the worst. There are areas in each capital city that are forever bearing the brunt when Mother Nature is in a foul mood, and that can have a direct impact on your ability to run your business.
Is a major access road subject to flooding every time there’s a downpour? Do you run a business with an outdoor seating area? And is public transport a viable option for your customers?
Unrestricted access needs to be a top priority, Gunning says, or people will look elsewhere.
“Access for a commercial property is critical,” he says.
“If you’re a reasonably heavy retailer, how are you going to take your deliveries? If you’re a food operator, what are the facilities for the storage of your food, and how are you going to take your deliveries? You can’t stop in a no stopping zone.”
WBP Property commercial valuations manager Justin Thomas says no one will be more aware of the outside forces that can affect a business’ trade than those in the hospitality industry.
You can’t plan for the weather, particularly in the hospitality industry.
“There are some areas, particularly if they’ve got outdoor seating, that are seasonal. If you have a good summer, everyone wants to be out on a sunny weekend but they’re less likely to on a wet weekend,” Thomas says. “That’s something you can’t plan for. You can have a roaring trade one weekend and a really poor trade the next weekend.”
Anchor tenants like Coles and Aldi can help drive foot traffic for retail businesses
Choose your neighbours
You can’t choose your family, but you can certainly have a big say in the kinds of businesses you choose to surround yourself with.
You can’t choose you’re family, but you can choose your neighbouring businesses.
Thomas says it can pay to be located near anchor tenants like major supermarkets and banks, as they are a guaranteed source of foot traffic.
But be warned that not every shop or office will receive the same flow of people. “It can be very locational specific, not just on that street, you might be in the wrong part of that street, which can have an impact,” Thomas says. “
Read more: 6 tips to help choose the right business location
