Choosing the right location for your business is an essential strategy for survival. Far more than the amount of rent you will have to pay, selecting a property that is closely aligned with the current needs and future goals of your business is vital. Make no mistake: it’s not a one-size-fits-all approach. Finding the right property requires a thorough assessment of a variety of factors, especially whether that property’s location will enhance your business.
Depending on the type of property, commercial properties in Wilmington can be found for lease for as low as $2 per square foot. This can make it very tempting to go for the cheapest option. After all, is there anyone out there who doesn’t want to minimize their costs? Paying much less for a property than is allotted for within the confines of the monthly budget could create a feeling of comfort in the knowledge that you have effectively decreased your risk exposure.
This is a false sense of security, however. That extra chunk of cash you are saving every month might make you feel comfortable, but if you are out of business in six months what does it matter? All of your initial investments of time, funds, blood, sweat and tears will be gone if your business doesn’t survive. Nobody wants to have to go back to square one and start over.
Put simply, cheaper isn’t always better. One property may have a much higher rent than another, but if your business is retail and that more expensive location receives excellent foot traffic from your target demographic, then it is probably in your best interests to choose that property. The point is that the property has to support the business and its ability to achieve success moving forward. The money isn’t the first priority.
As an example, a business owner operating in an industrial space will need to look for a property with suitable access to key distribution points, adequate ingress and egress, and a trained workforce. Many law firms will need to be located close to downtown, to leverage the proximity to the courthouse; other businesses may want to locate near educational institutions or recreational centers to attract college students. I have always been intrigued by the crucial role that location plays in recruitment and retention of employees, which is one of the most important assets for any business.
Locating a business far away from the workforce it needs to grow or maintain operations will definitely sabotage its ability to be successful. If your business is located somewhere that nobody would want to live, then recruiting highly qualified personnel to move there will be a struggle; keeping them after you have invested in their training and provided them with experience will be next to impossible.
To avoid that mistake and create a pathway to success, it’s critical to select the location that best fits the specific requirements and needs of your business. There are many factors that need to be addressed and questions that will need to be answered, including, “As a percentage of my overall expense budget, what do other companies pay for rent in my type of business, both locally and nationally?”
Working with an expert in commercial real estate can help you find the answers you need to grow. A qualified professional with years of experience and a comprehensive understanding of the local marketplace can guide you through the complex process of selecting a property with the location to support you and your business – now and in the future.
Grayson Powell is a Managing Partner at Coldwell Banker Commercial Sun Coast Partners (CBCSCP). CBCSCP leverages the vast experience of highly-skilled real estate professionals and developers who specialize in selling, leasing and managing retail, commercial, and investment property. To learn more about CBCSCP, email Grayson at [email protected], visit www.cbcwilmington.com or call 910-350-1200.
Christina Haley O'Neal - Jan 27, 2020
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