Thinking about launching your own business, or taking your company to the next level with a new location? Finding the right spot for your retail, commercial, or industrial outlet should involve a lot more than looking at a map and setting a budget.
Recently, we had a chance to catch up with the team at RK Centers to ask them what lessons they’ve learned from commercial real estate master Raanan Katz. Here are the seven tips they passed along:
1. Know your commercial real estate needs. A deal is only a good deal if it actually meets all of your needs. In other words, you should never be distracted by a property, no matter how great it seems, if you can’t envision your business flourishing in the space or location. Make a list of your “must-haves” first, and then look for the right fit.
2. Remember that location is everything… Retail businesses are often incredibly dependent on two things: walk-in (or drive-by) traffic and easy accessibility. Even if you won’t have customers coming directly into your location, it needs to be easy for others to find, reach, and park by. RK Centers team members tell us that Raanan Katz always evaluates locations carefully when choosing new properties.
3. … But so is the space. However, even the best location isn’t going to do much for you if you can’t make the space work for the kind of business you plan to operate. That includes size, of course, but also electrical requirements, zoning eligibility, and so on. Try to envision any obstacles with the property before you sign the lease and move in.
4. Look for the right neighbors. Certain types of businesses naturally go together. At RK Centers, the development team is masterful at bringing in “anchor” retailers and complementary local businesses. Ideally, you have other companies around you that will draw customers to your store. At the very least, you don’t want any neighbors that will drive shoppers away.
5. Choose the right commercial real estate partner. Choosing to work with the right company can do wonders for your satisfaction. Reputable businesses like RK Centers make it easy to inspire trust, and staff members say that starts with Raanan Katz at the top. If you don’t want any problems with your lease, fees, etc., find the right commercial real estate developer to work with.
6. Plan for the future. Choosing the right piece of commercial real estate isn’t just about matching your needs to available properties today, it’s also about thinking ahead into the future. Imagine how you might want your business to grow, and see if you can find a space that will accommodate your needs down the road, as well.
7. Always read the fine print. RK Centers employees tell us that disagreements in commercial real estate are hardly ever caused by someone trying to do something wrong; instead, they stem from misunderstandings or inattention to details. A successful businessman like Raanan Katz never signs an agreement without understanding all the terms, and neither should you.
Most of us would never get the chance to pull commercial real estate advice directly from a successful entrepreneur like Raanan Katz. So, before you sign the lease for your first or newest location, take the tips provided by the team at RK Centers to heart and see if you can follow his example.