There are many reasons why you may want to move your business to a new location, but if you want to be sure the location you choose is not only equipped to meet your needs, that the price is reasonable and that the location is ideal, consider bringing in your business advisory team for guidance.
When it comes to determining your business’s overall financial wellness, look no further than your financial advisor. These professionals are experts when it comes to helping you determine an accurate cash flow projection, make sense of any tax implications associated with the move and will help you determine if, based on your current size and projected growth, that space you are eyeing makes since. But your financial advisor can really only help you see a part of the picture. I recommend bringing adding a real estate expert to your business advisory team when major relocation decisions are the topic of conversation.
A common mistake some business owners make is to believe they can coordinate the office relocation themselves. And while it may be possible to manage your daily responsibilities, make decisions about the future of your business and property real estate negotiations, you may wind up doing more harm than good because you aren’t giving any of your responsibilities the proper attention needed to succeed. A real estate broker will not only manage the legwork associated with choosing your business’s new location, they will make sure you get exactly what you are paying for while negotiating a deal that builds out time for you to establish yourself at your new address.
I recently spoke with Justin Fodor, a real estate broker with Carr Healthcare Realty, a brokerage firm that works exclusively with professionals in the healthcare industry, about other reasons why a business owner – regardless of industry – should consider working with a real estate expert.
Get Your Money’s Worth
When it comes to understanding the art of negotiation, a real estate broker has the knowledge and experience needed to help you lock in a great deal at favorable terms – regardless of whether you are planning to buy or rent your new property. Oftentimes during this process, the business owner may be a apprehensive about being too forceful during the negotiation process. Justin says this is a great scenario of when a real estate broker would come in handy because they have the knowledge needed to go into the meeting with the confidence of knowing that the “sticker price” is only the starting price.
And if you are worried about sending in a broker to negotiate on your behalf, don’t be.
“Landlords work with brokers all the time,” explained Justin. “In fact, they hire their own brokers. They expect you to bring one to the table as well.”
Location, Location, Location
According to Justin, if a real estate brokerage firm doesn’t specialize in demographics itself, they will work with professionals who do to make sure their clients are getting the ideal location for their business. Whether you want to find out how many similar businesses are in a certain area or whether the local business climate is right for your business to be successful, demographic information helps optimize your office’s geography.
“We can help [our clients] decide the type of environment that’s right for them by taking into consideration foot traffic, visibility, population, and other demographics,” said Justin.
Take The Time You Need
Perhaps one of the best reasons to work with a real estate broker – especially one who specializes in your specific industry, is because they know how to negotiate for terms that matter most to you.
Justin explained that when he works with dental professionals, for example, he always asks for the time needed to move into the space, install equipment, remodel the office and reestablish their client business.
A broker, especially if they specialize in serving businesses like yours, can help you negotiate the time you need to stabilize your business’s cash flow. In fact, Justin said it’s not uncommon to secure a 5-month build-out period and 3-4 months of rent-free office space, which gives you enough time to get your business up and running again.
Are you considering an office relocation or a major warehouse move, email Rea & Associates to learn more about establishing a strong business advisory team.
By Ryan Dumermuth, CPA, CFP (Mentor office)