Basics for your Commercial Real Estate Benchmark and Searches

CRE_Benchmark_and_Searches

The search for the right commercial real estate space for a client can be a long and arduous process. The use of a real estate benchmark for the most important building specifications and attributes can significantly facilitate the search process.

Location

Many businesses demand a corner space (or end cap), certain types of anchor tenants (typically for retail locations), or specific zoning requirements (often for industrial sites). You should also keep in mind ease of transportation and access to your location. Naturally you would want your customers to be able to get to you easily, but what must also be considered in this is highway access for trucks and the like. Aside from the logistical nightmare that could potentially come with not having access to the proper roadways, are also the possible effects of local perception of your stores. If your business is seen as a disruption to the natural flow of traffic and commerce, you may see a ripple effect in your sales, particularly for smaller retail stores.

Square Footage

Businesses typically have an idea as to how much space they need. And with the help of their CRE consultant should be able to come up with a ballpark figure as to how much space to seek when performing their market research. What many fail to consider, however, are potential for growth and expansion into more space in the building. Example: If you are a tenant requiring 40k SF, and you have found a building with 45k available, that may be sufficient for the time being. But if you anticipate requiring and addition 10k SF in 5 years, are you going to be willing to risk all of the expenses associated with relocating on the chance of having enough vacant space available? Even with an expiring lease by the time such changes will be necessary, a long-term commitment to your location is, more often than not, beneficial to your bottom line as well as employee moral.