There are many considerations for finding the right facility for your business, especially in sectors like manufacturing. Rafael Roberto, Broker of Record, President, Coldwell Banker (one of Spark Centre’s Elite Partners) lays out his top tips for entrepreneurs looking to lease facilities for their business.
Rafeal says that the facility that you choose largely depends on the type of business an entrepreneur wants to establish or relocate to. For example, for manufacturing, entrepreneurs would want to utilize minimal office space and maximize production space (typically a 90/10 ratio). Also, depending on their product, an entrepreneur may need a manufacturing space as well as a showroom, which could change that ratio.
Here are more tips that Rafael had for entrepreneurs:
Knowing the zoning requirements is key as most jurisdictions are very specific regarding end uses of the different types of properties. Like industrial, retail, office, manufacturing, showroom or warehouse for example.
Depending on the type of use or business, the location should address factors such as visibility, accessibility, area demographics and whether customers are readily accessible.
Consideration should also be given to staffing the facility. What are the area demographics? Is the facility accessible for staff? Close to public transportation?
The layout of the facility is another important factor. Take note of the floorplan, size required and any special accessibility requirements such as whether the facility needs a truck level dock, a receiving or shipping area, a drive-in area, etc. Will that layout suit your needs or make operations complicated?
As with any rental, entrepreneurs should be prepared to offer the landlord proof of good credit. Some landlords may also require business plans.
However, just as the landlord will be conducting a background check on the business, entrepreneurs should also gather intel on the landlord such as whether the landlord is reasonable or very strict, would they offer potential free rent in lieu of leaseholds and more. Your landlord will be with a business for as long as that business is in that facility or office and a positive relationship will make all the difference.
Rafael’s last piece of advice? “Seek the advice of a competent professional real estate broker.” You can reach out to Rafael or a knowledgable broker with Coldwell Banker at www.cbrmr.com.