Business owners considering the idea of scaling might deal with several decisions. Some of them will carry plenty of weight. One in particular is whether it may be time to choose a commercial property that will accommodate such growth and beyond soon. This guide will show you how to choose the right property that will fit you best.
There will also be things that are worth considering before choosing a property. It includes the layout, location, and anything that might stand out as vital for business growth. Let’s get right to the details and help you choose the property that will handle a growing business like yours.
Why Is Property Important For Business Growth?
Commercial real estate represents the investments you put in for your business’s future. Choosing the wrong property can hurt the overall return on investment. It can also drain your resources, threaten your potential, and less clients. That is why the process of choosing a property will need to be careful while addressing your business priorities.
The right property can attract new clients or customers, help you scale your business easily, and take your brand to new heights. West Chester, PA commercial real estate opportunities are ripe for a company that sees growth as a long-term plan. Multiple sectors are looking to scale not just their businesses, but also the entire industry. This means that the demand for commercial property is steadily climbing. For this reason, now is the right time to decide if a property is worth investing in your overall business growth.
Know Your Business Needs
Knowing your current business needs right now and in the next three to five years will be critical. It will allow you to make what could be the most monumental decision for your business yet. Consider the following questions that you need to ask yourself:
- How many employees or team members do you have?
- Are there any special requirements such as open floor plans, private offices, manufacturing space, storage, etc.?
- Do you want clients or customers to visit regularly?
- What amenities or features are likely used for improving productivity or the overall customer/client experience?
- Is your business growing or downsizing?
Each answer to these questions will play an influential role in what you’ll need. This includes the amount of square footage that is enough for accommodating your business, zoning requirements, interior design, and more. You’ll want to choose a property that will fit the current model, but will be enough to accommodate future growth.
Make Location A Very Critical Consideration
As the old saying goes in real estate, “location, location, location”. This will be something to consider in establishing your business operations. You’ll want to consider these aspects before choosing a property for your business:
- Visibility and accessibility: Consider whether the location is easy to find. This will also apply to signage potential and foot traffic.
- Customer proximity: The closer your business is to your target market or client base, the better.
- Employee commute: The location should also be important to your employees. Will they have access to highways, safe walking or biking routes, or public transportation? Before choosing a property, get an idea of what employees look for in their ideal commute. Some would rather want a quicker commute compared to others or at least a location where easy accessibility is possible.
- Local competition: Is the location near complementary businesses or competitors? Placing your business near them could affect a customer or client’s choice.
The downtown district of West Chester, PA can be appealing to many businesses. That’s because they offer locations that have a high walkability rating and are easily visible. You’ll want to match the area based on your customer experience goals and your industry, to name a few.
Evaluate The Physical Condition Of The Property
The physical condition of your ideal property must be taken into consideration. This will be more for overall safety and security. While searching for their deal property, you’ll want to make sure things are thoroughly assessed, including the following:
- Layout flexibility
- Structural integrity (foundation, walls, roof, etc.)
- HVAC, electrical, and plumbing
- Internet and utility access
- Parking availability
- ADA compliance (chair lifts, elevators, etc.)
A property that is in good condition will be a major plus. However, some properties may need a larger significant capital investment for repairs and renovations to ensure that the building is usable. If you are on a budget, turnkey options might be worth considering. A commercial inspection before deciding to purchase will be critical.
Requirements For Zoning And Permitting
You want to make sure that the building you’re looking at is appropriately zoned for your business. Not all business real estate in West Chester will be zoned equally. There may be buildings that fall under one zoning code compared to a property that is across the street. Let’s take a look at the following examples:
- A restaurant may require specific permits for outdoor seating or exhaust systems.
- A retail business cannot occupy a space that is intended for light manufacturing.
- All medical practices will need to undergo additional inspections to comply with health regulations.
Your Strategy For Commercial Property Financing in West Chester, PA
Financing will be one of the biggest barriers to acquiring a property. It can not only set up your potential options based on affordability, but it can also eliminate other options. Making a smart, sustainable investment will be key and might include taking one of these financing routes:
- Traditional commercial mortgages (downpayment of 20 to 30% is normally required)
- SBA 504 and 7(a) loans
- Commercial bridge loans (if you seek short-term flexibility)
- Seller financing (if applicable)
Keep in mind that each commercial property financing strategy will have different terms, qualifications, and interest rates from one another. Choosing the best financial plan will be based on your cash flow, long-term goals, and other aspects. Don’t forget that your finances should also be able to handle costs for appraisals, legal fees, inspections, and potential renovations.
Work With A West Chester, PA Financial Professional Today
Finding a commercial property for a business does have its challenges. Yet, you can navigate through the obstacles with ease. The best way for it to be done is to have a financial professional at your side to help you through the process. Contact Penn Street Mortgage today, and we will be happy to walk you through the process.