For small business owners, finding the right space can be a game changer
“This is where we’re planning on being for a while,” Blankenship said
Securing a lease in a space that can help a venture thrive is key for a small business. It can mean the difference between sticking around long-term or exiting after a short period of time. A variety of factors come into play when choosing a space, from parking and lighting to proper square footage. Entrepreneurs must be educated and savvy to avoid pitfalls that could play a role in the business failing.
Shared space an option
Using the shared space makes perfect sense for Hassan Ayoub, who recently leased an office at Bamboo Royal Oak. The owner of Ayoub Advisors & Accountants believes starting out in the shared space is the best route to sustained success.
‘A reflection’ of you
Following are tips for small business owners looking for space:
- Seek representation: Enlist a tenant representative — a commercial real estate expert working exclusively for the prospective lessee — who will help ensure you pay get the right amount of space at a fair rate.
- On your terms: There’s always a possibility that something goes wrong once the lease is signed. The landlord could sell the building, leaving the business owner in a difficult situation. So don’t sign a lease of longer than five years. The prospective lessee has the wiggle room to sign a short lease with an option to extend.
- Have financials in order: Landlords want to ensure a potential tenant can afford the rent, so the lessor will ask for documents such as tax returns, bank statements, financial references and a letter of credit from a bank guaranteeing the lessee can make the monthly payments in a timely fashion.
- Space saver: Landlords bring in more money the more square footage they lease out. A prospective tenant should have a space planner or designer lay out their floor plan to eliminate the possibility of paying for unnecessary space. The lessee can hire a space planner or use the landlord’s. A tenant rep can help ensure a landlord’s space planners don’t call for excess space.
Sources: Axis Advisors and Signature Associates
Posted By: Crain’s Detroit Business on April 18, 2022. For more information, please click here to read the source article.
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