Feeling safe at work should be a must! Workplace safety “refers to the working environment at a company and encompasses all factors that impact safety, health and well-being of employees.” For both building owners and tenants, safety should be of the utmost importance. But how can you be sure that this is true?
In commercial spaces, sometimes this can, unfortunately, end up lower on the priority list. Let’s be sure this isn’t the case! Of course, no one wants for it to happen, but it’s best to be prepared for the worst of scenarios. Here are some helpful tips for workplace safety.
Find People Who Will Respect Your Building
When talking about workplace safety, a critical aspect to consider is people. As a building owner, it is absolutely crucial to find tenants that will respect the workplace. Because your tenants will be in the space without your supervision, you need to trust them. So, do your due diligence and make sure your tenant is trustworthy and ask your broker for their opinion about the tenant. Experienced brokers have seen it all, and they can give some insight on if they think a company would be a good tenant.
On the other hand, as a tenant, be sure you find employees who will respect the space as much as you. After a few years in a space, a bit of wear and tear is normal. But, employees need to understand your company is leasing the space and help you by keeping the space in order.
Cleanliness is Key
When an area is dirty, more germs and dust can be in the air. This can be harmful to the occupants. This can create a stuffy environment that may be hard to concentrate in and can increase illnesses. So, as a building owner, it’s important to either hire a cleaning crew, or require your tenants to clean their space themselves.
As a tenant, we recommend adding hand sanitizing stations around the office, warehouse or mixed-use space. Right now, germs are definitely a top concern for employees who come to work. So, having hand sanitizer readily available can be a great workplace safety precaution. Also, making sure soap dispensers are always filled is important as well.
Cleaning Up Clutter as a Tenant
When an area is cluttered, it is more likely that someone will trip or injure themselves. With injury comes complications (like lawsuits!), so it is important to maintain clear pathways. Stowaway any unnecessary items and provide employees with the proper workspaces.
Pro tip: Clean as you go! Whether it’s another day at the office, or the floor is being remodeled, never leave the clean-up for just the end. By maintaining it throughout the day or project, you are ensuring that it will never get out of hand. This provides safety for everyone that is occupying the space.
Provide Proper Equipment for Employees and Tenants
Depending on the role and industry, an employee may be required to operate tools or equipment. They should be provided proper training for all aspects of their job, but it is crucial for them to be comfortable using the equipment. This can help maintain a safe workplace. As a tenant, use this opportunity to give the employees proper training. It can help deem the workplace as a safe one and avoid any troubles. Other employees will also feel safer knowing that their colleagues are properly managing their equipment. This is only half of the battle, though. Employees need to be sure they are using the correct equipment for the job. If they need a tool that they don’t have access to, effectively communicating this to their managers can help. No employee should be asked to complete a task without the proper resources. It not only creates tension but can make an unsafe environment.
Workplace and Equipment Safety For Building Owners
As a building owner, specifically for warehouses and mixed-use spaces, it may be in your interest to make sure any equipment is properly functioning. Even if your tenants have proper training, broken equipment can cause significant injuries. So, before switching tenants, consider getting an inspection done on any equipment you have in your space. Whether this be an automatic garage door or production line equipment, make sure it’s safe for your tenants.
Fire Safety Tips
Fire drills seem to always come at the most inconvenient of times. Right before that important meeting, while you settle in after lunch, or as you make that extra cup of coffee midday. Still, these are the simple procedures that can really make a difference when it comes to safety in a corporate building.
Unfortunately, a fire can start in an instant, and completely inhibit the safety of employees. Buildings should be up to code and inspected by fire safety professionals frequently. As a building owner, this is a highly important task for you. If your building doesn’t have the necessary number of fire exits or there are fire hazards, you may be putting your tenants at risk. So, contact a fire safety professional to inspect your property as often as necessary. We recommend making sure they are certified by the National Fire Protection Association before hiring them.
Workplace Safety For Both Business Owners and Tenants
There is definitely a lot to consider when it comes to workplace safety. In this instance, it is best to be over-prepared. Safety is never a joke and isn’t something that should be taken lightly. In commercial spaces, a lot can go wrong. By following these tips and creating a plan to make sure everyone is on board, whether they be your employees or your tenants, will keep people safe.
This is the second half of a two part series on 2021 Commercial Real Estate Predictions and Insights. You can find the first half of this series here: 2021 Commercial Real Estate Predictions and Insights
Insight 4: An Industrial Real Estate Explosion
Whether it’s a retail conversion or new construction, there’s going to be a massive need for industrial real estate. With e-commerce being the top choice for shopping, we expect to see at least 250 million commercial square feet dedicated to industrial space in the coming years. According to CBRE, $1 billion in e-commerce revenue necessitates a need for 1.25 million square feet of warehouse space. So, all major cities will need expansive warehouses for packaging, storing and shipping consumable goods.
Prediction 4: Industrial Real Estate
Spacious, gateway areas close to ports and bustling cities (particularly in the southwest and southeast) are expected to see a surge in commercial industrial conversions and population growth. Population growth will likely boom with the onset of industrial expansion and greater job availability. But, it should be noted physical labor alone cannot accommodate the anticipated burgeoning growth. To maintain efficacy, streamline productions and reduce operational costs, industrial real estate lessees will depend on autonomous robots, software scheduling and updating and virtual security.
Insight 5: Socially Distanced Multifamily Living
In 2021, affordable housing is at the forefront of everyone’s mind. However, this won’t halt the demand for multifamily living. This year we anticipate multifamily investments to increase by 33% with over $148 billion in revenue. Shelter-in-place mandates made urban cities unappealing for many. Urban areas have turned into undesirable locations that suffer from high rent, high-cost public transportation, and other costly downsides. Additionally, dense populations often have inadequate indoor and outdoor space to social distance. When it comes to amenities, there are many unavailable or unusable entertainment “amenities” like restaurants, theatres, venues, etc.
After feeling the pent-up effects of the lockdown, many city dwellers (who likely work remotely now) have packed up and moved to less dense, suburban areas where they can stretch, relax in ample space. This is mostly to enjoy the natural amenities for the time being. Seeing many cities are not completely abandoned, multifamily investors working to retain tenants need to prioritize community engagement after the pandemic is over. Hopefully, this will make up for emotional connectivity and urban romanticism lost from in-person interactions.
Prediction 5: The Modern Multifamily Experience is Virtual
Multifamily investments in suburban and rural areas will likely grow as remote employees no longer need to live close to their work headquarters. For example with Salt Lake City, areas like Layton and Bountiful will likely be desirable locations. This is because they’ll offer affordable housing solutions that also await industrial prospects like warehouses and distribution centers.
While social distancing remains in effect, virtual engagement in the form of mobile apps will be a must for urban and non-urban multifamily complexes. App initiatives like polls, rewards programs and virtual meetups instill a sense of connectivity.
According to Deloitte, companies can continue to improve the value and connectivity of their assets. This can be done by “deploying smart building design and maintenance capabilities and offering more relevant services to tenants and end-users”. Such services include:
- Tenant-predictive analytics
- Smart-building technologies
- 3D property visualizations
- Facility and maintenance monitoring systems
Insight 6: Socially Distanced Vacations
While the demand for hotel and vacation space is steadily increasing, it’s going to take a while for hotel investments to return to pre-pandemic volume. The public is anxious to relax somewhere that’s not their home. But, they are also hesitant to vacation in once-popular, high-traffic areas. The rate of recovery for hotel occupancy is closely tied to the distribution of the COVID-19 vaccine.
For now, drive-to destinations like campgrounds, parks and natural attractions are popular alternatives to hotel stays. Interestingly enough, rural and interstate hotels do not have any issues with vacancies, compared to their urban counterparts.
Prediction 6: Hotels Will Have to Wait
While all varieties of hotels have experienced some form of loss from 2020 vacancies and closures, economy vacation real estate experienced the least amount of disturbance. We expect economic vacation investments to continue to face the least revenue, unfortunately. Additionally, we expect vacancy and recovery hurdles when compared to their upper-scale and luxury counterparts.
Hotels in urban areas that rely on business travel are expected to recover the slowest. Fortunately for urban, upper-scale and luxury hoteliers, business recovery is predicted to experience the sharpest incline of revenue per available room. However, this is once vaccinations are widely available. In the meantime, hotels can work on boosting their competitive edge by investing in the future of hotel vacationing with technology. Some desirable technological integrations are mobile apps and virtual on-demand entertainment.
Insight 7: The Reign of Colocation Centers
If you’re looking for a long-term, dependable commercial investment, consider colocation. E-commerce, cloud servicing and online content consumption are crucial to our workplaces, shopping experiences, living arrangements and vacation plans. Commercial real estate has a definite need for server and hardware storage to host all these vital services. So, it’s no wonder data center REITs are becoming a popular commodity within the commercial real estate market.
If you’re looking to sharpen your competitive edge, you should know enterprise companies want to maximize power and efficiency by looking for data centers with “clean energy” initiatives. Providing secure, stable, clean and environmentally-conscious data storage environments may be more than a marketable feature. Furthermore, it may also be tax-advantageous.
Prediction 7: Data Centers Aren’t Going Anywhere
We anticipate colocation tenants to look for flexible short-term leases in the foreseeable future. However, with online and cloud technologies driving innovation, commerce and networking, we assume they will eventually buckle down into long-term leases. These will likely be in affordable, budding, rural cities.
Our 2021 Commercial Real Estate Predictions
There’s a lot of promise for 2021 commercial real estate predictions. So, whether you’re looking to buy your first commercial real estate, improve your existing real estate assets, there’s sure to be an opportunity in the coming year. If you have any other questions, please feel free to contact our team. The SVN Alta team is here to help you so you can make a smart investment or have a great sale.
After the 2020 peak of the coronavirus pandemic, the commercial real estate market is ready for positive change and growth. This year, we expect to see auspicious changes within office, retail, industrial, multifamily and colocation spaces. All of these rely on investor abilities to adapt their spaces and services using technology. In this two-part series we are sharing seven exciting insights for 2021 commercial real estate predictions based on CBRE’s and Deloitte’s Market Outlook reports. In this first part, we will cover the first three insights. Part two will be published on February 11.
Insight 1: 2021 Commercial Real Estate’s Technological Leap
Almost a year after shutdowns went into effect, many remote companies are still figuring out how to balance home and work life. With the coronavirus still looming in our everyday life, social distancing, thorough sanitization and virtual connectivity remain a top priority among investors. Not to mention, these are priorities to employers and employees. With vacancies and short-term tenancies abound, investors are looking for ways to increase the value and attractiveness of their assets. This is all while recovering losses from the previous year. In an effort to reduce inefficiencies, streamline processes and cut overhead costs, commercial real estate investors are virtualizing many in-person tasks. Such processes include the digitization and automation of property tours, access and security. Additionally, this helps with amenities and industrial jobs.
Prediction 1: Commercial Real Estate Needs Tech to Thrive
Commercial real estate companies will accelerate their use of technology within their assets to improve tenant experiences, overhead processes and building maintenance workflows. Such improvements include the integration of mobile apps and cloud-based tools. These will help improve tenant experience and assist property managers.
Insight 2: Rethinking Office Space
In 2020, we observed a multitude of businesses shift to remote workflows, with commercial office investors racing to keep up and offset torrential losses. For 2021 commercial real estate predictions, the modern office space stands between the crossroads of flexibility, functionality and quality. According to Deloitte, companies are “incurring higher operating costs because of the additional health and safety measures they are implementing . . . operating costs could increase by at least [$19.4] per square foot.” This equals 5.8% of the average annual office rents at the beginning of 2020.
Flexibility with 2021 Commercial Office Space Leasing
When it comes to 2021 commercial real estate predictions around office space, investors should be cautious. As vaccinations roll out and public fear of the pandemic diminishes, companies are rethinking how and when they will use office spaces. The lockdowns and shelter-in-place mandates of 2020 showed many companies their employees don’t need a full-time physical workplace. Still, companies realize they need a physical workspace to promote company culture, host innovation meetups and conduct critical face-to-face meetings. To future-proof their assets against long-term vacancies, investors and tenant companies alike will need flexible leasing terms. Ultimately, this means increased rent rates and short, shared lease terms.
Multi-Concept Office Functionality
Considering the shared nature of flexible leasing, offices need to be adaptable for use by a variety of companies. Investors are looking for new ways to maximize the use-case potential of their office spaces by creating simple, modular offices. If a commercial office investor wants to make the most use of his or her asset, they should aim to address the needs of multiple industries. But, these should include with accessible, shareable spaces.
Enhanced Office Quality
In a time where remote work blurs the lines between work and home life, companies are also rethinking teamwork processes to design cohesive culture across remote teams. Among all the types of spaces, Class A properties will have the most demand for quality improvements. Commercial office investors can attract lessee companies invested in their employees’ wellbeing. Typically, this can be done by enhancing their offices with modern, clean and premium amenities. After a pandemic, such features include:
- Rigorous sanitation schedules
- Impeccable, monitored air-quality
- Open, airy rooms with lots of light and sunshine
- Contactless food and beverage stations
- Contactless office tools
Prediction 2: Vacant Office Spaces Rebound by Catering to Company Culture Initiatives
Dense cities with tech firms like San Francisco and New York are expected to see a continued decrease in demand for office space since employees are working remotely and moving to more affordable areas. Despite the increase in remote employees, suburban commercial office usage is still expected to return to pre-pandemic normalcy as communities restabilize. However, urban areas will rebound at a slower pace than the suburbs. In order to stay relevant and desirable, office companies must present their locations as safe hosting options for team-building and collaboration across a variety of industries.
For 2021 commercial real estate, we expect to see commercial office space scale the quality and use-case potential of office spaces with a multifunctional design. The most notable changes in office space for 2021 concern future leasing flexibilities, rent increases (to compensate for flexibility and 2020 losses), and contactless technological amenities.
Insight 3: Retail’s Mixed-Use Pivot
The most interesting commercial real estate evolving during this period is in relation to malls. Before 2020, many retailers were already shifting to e-commerce platforms. Additionally, malls were already undergoing a rapid decline in popularity. Then, the virus forced lagging retailers to adopt the e-commerce models or go out of business.
Malls are immensely promising commercial ventures for urban areas. However, converting them into mixed-use spaces requires a good amount of zoning law workaround. For investors, mall storefronts may need to adjust their usage to improve community engagement to combat the losses and costs incurred by storefront vacancies and rent drops.
For urban-dwellers, converting malls into community spaces like medical, grocery, recreation and cultural centers is an opportunity to address the growing demand for essential retail and housing, as well as create a safe gathering place to combat the isolation of social distancing. Some quick, adaptive features malls can put into effect immediately include:
- Contactless shopping flows like self-service checkouts
- Contactless entry and exit points
- Sanitation stations
- Delivery services for essential goods
Prediction 3: Urban Malls Repurposed and Suburban Shopping Resumes
There will be a decreased demand for retail space in dense cities and a moderate to large demand and growth for retail spaces in suburban areas. The difference in growth is largely due to the available amount of living space and population density.
Retail spaces in urban areas are expected to convert into essential retail storefronts within the next couple of years. With more room to spare, suburban areas should expect to see a natural rebound for all types of retail spaces, particularly experiential storefronts like shopping and dining throughout the year. There is no estimated timeline for malls to convert into mixed-use properties. Due to its complexity with zoning and local ordinances, it may be a long process that may outlast the hotel industry’s comeback (more on hotels starting at insight 6).
… Visit our blog again on February 11 to read the second half of this series. …
One of the great challenges for commercial retail spaces in 2021 is finding ways to get customers in the door. Whether restricted by social distancing mandates or simply stymied by an online ordering culture, brick-and-mortar businesses are facing challenges in attracting customers like never before. To continue to thrive, retail spaces must find ways to add value to the consumer experience above and beyond the products and services they house.
Fortunately, there are a number of trendy exterior renovation projects that can boost foot traffic in a retail space, creating the competitive advantage for which SVN has been known since 1987.
1. Simplify the Signage
Customers in 2021 have notoriously fickle attention spans. They do not want to spend time looking, reading, and thinking before making a decision. They want to see it, make their decision, and go on with their lives.
If a store features hard-to-read fonts and text-intensive messages as part of its permanent signage, consider simplifying this to something more digestible for a crowd that is likely to offer a cursory glance, at best.
Spend time developing a simple logo and brand and incorporate this as the focal point of the signage. When thinking about logos, ask the question: Would this make a good app icon? Subway and Best Western are two major retail chains that have recently modified their logos to be more app-friendly, with signage at physical locations being updated to match this change.
2. Add Some Architectural Decor
Although customers like the consistency of a simple, recognizable brand, there is something to be said about using individual creativity to catch the attention of passersby. The country is in a bit of a DIY renaissance, with custom craftwork and artisanship in high demand, so features that can make a business stand out in the midst of a cookie-cutter crowd can be beneficial.
Some creative decor ideas that can spruce up a retail space’s exterior include architectural grilles, ornate columns, and/or artwork made of recycled metals or other sustainable materials.
3. Improve the Parking Lot
A parking lot that feels unsafe, illogical, or is in a state of disrepair will be a major deterrent to foot traffic. Freshly landscaped islands, filled potholes, angled spaces, and re-painted space lines are all great ways to make a parking lot more inviting, an important first step in getting customers in the door.
4. Give Customers a Look Inside
Using a large display window or wall not only allows customers to see product offerings, but it can be influential in creating an open and inviting atmosphere that appeals to passersby. As contemporary retail shopping needs to be more of an experience than a buy-and-sell transaction to appeal to modern customers, giving customers the ability to look inside and see what value a business can add to their lives should be a primary consideration.
5. Make Accessibility a Priority
An important aspect of increasing foot traffic is making sure that a business can accommodate all potential customers. Without ramps, handrails, and benches to assist disabled clients, a business is immediately eliminated from consideration by this demographic.
6. Install an Automatic Door at the Entrance
Automatic doors make customers feel like they are getting the red carpet treatment. In addition, the accumulation of germs on door handles has gotten a lot of attention during the COVID-19 pandemic, so this small renovation can help make customers feel safe by ensuring a contactless entrance.
Getting customers in the building will be a riddle that contemporary retail spaces must continue to solve to remain relevant in 2021 and beyond. By using the six exterior renovation ideas listed in this article, businesses can increase foot traffic at their physical locations to secure the competitive advantage for which SVN is known.
Matt Lee is the owner of the Innovative Building Materials blog and a content writer for the building materials industry. He is focused on helping fellow homeowners, contractors, and architects discover materials and methods of construction that save money, improve energy efficiency, and increase property value.
The term “tenant representative” is a common one in the commercial real estate world. You have likely seen brokers advertising their tenant representation services in the past. But, does everyone need a tenant representative? Perhaps you are highly experienced in commercial real estate purchases and are unsure if you need help. But, if you do need a tenant rep, the downside of not using one can be significant. To see if you truly need a tenant representative, continue reading this blog post.
What is a Tenant Representative?
First, what is a tenant representative? A tenant rep, also known as a tenant advisor, is a commercial real estate agent who helps tenants, not landlords. They help tenants find the best property for their needs. A tenant rep will also represent their client in a commercial real estate transaction. This way, the tenant doesn’t have to negotiate the terms with the landlord and their agent.
A tenant advisor also helps answer their client’s questions. These may include, “How much space do I truly need in a property?” Or, “What kind of property does my business require?” No matter what question a tenant has, their representative should be able to answer it. This can be incredibly helpful so you don’t get stuck in a deal that you regret later on.
Is Tenant Representation Required?
Many people wonder if tenant representation is a requirement in their state. The answer is, you do not have to use a tenant representative in any state. It is a right for every person in the United States to work with a tenant rep, but they do not need to use one. The decision to use a tenant representative is entirely up to you. But, this doesn’t mean you shouldn’t hire this help.
Investors or business owners shouldn’t overlook their right to use a tenant advisor. They can help you in numerous ways, and the return on investment is much higher than you may expect. There are several other benefits of using a tenant rep, so it is likely in your best interest to use one.
The Benefits of Tenant Representation
The primary benefit of tenant representation is they will be on your side and will work in your best interest. Most landlords know how important it is to hire someone to help them sell their property. Since they will have someone to represent them, you should have someone represent you as well. This will ensure the commercial real estate transaction will be successful. Some other benefits are listed below.
Find Properties More Easily
It can be very difficult to find your own property if you don’t know what to look for. Between the multiple different types of properties to the different locations you need to consider, expertise is necessary to make the right choice. You may have an idea of what type of property you need and where you would like it to be, but there may be better locations or properties available. So, they can bring all of the properties that suit your needs to your attention.
In addition to knowing what type of property you need and the best locations, they also have access to commercial real estate databases. There are several databases for only commercial real estate brokers. With the experience and knowledge tenant representatives have, they can help you find a property more easily.
Get a Better Deal on Your CRE Property
Tenant representatives help their clients negotiate a great deal with the owner of the property. Doing this yourself without any experience can be very challenging. The landlord’s representative is a skilled negotiator with likely many years of experience. So, going up against them yourself can put you at odds of getting a good deal on the property or your rent.
When you have a tenant rep on your side, they will do all the negotiating for you. They will use their expertise to lower how much you spend on the total purchase or on your monthly rent. This can potentially save you thousands of dollars. So, rather than taking the chance of doing the negotiating yourself, hire an expert to assist you. Not to mention, it will save you a considerable amount of time and stress.
Having a Tenant Representation is Free
Perhaps one of the best benefits of having a tenant representative is you don’t have to pay for their services. Rather, the landlord of the property you choose will be responsible for the payment. Because the tenant representative shows their client the landlord’s property, the landlord pays them. Even if they have their own representative, they have to pay them both for their services. But, your tenant representative is still on your side and will help you get the best deal possible. So, if you are considering working with a tenant rep, you have nothing to lose.
Need Tenant Representation in Salt Lake City?
A tenant representative has an unlimited return on investment because you don’t have to pay anything. They have your best interests in mind, and they are who you need on your side. So, it is in your best interest to work with one.
If you are in the Salt Lake City, Utah area, please feel free to contact us. One of our brokers can represent you in your commercial real estate deal. Our team is ready to take on new clients and are excited to work with you!
Before COVID-19, offices and shared coworking space were doing very well across most markets. However, with the movement to stay at home, many offices were empty by the middle of 2020. And, many office space are still on the market after many months. But, does this mean it’s the end of office space forever? Thankfully, according to some studies, it’s not. So, in this blog post, we discuss the possibilities for office space in the future.
The Future of Office Space
Many people are concerned about the future of office space. This is for a great reason considering vacancies continue to rise each quarter since COVID-19 came to the US. However, just like with most commercial real estate properties, investors can see success with their space. It may take some strategy and creativity, but it can certainly be done.
Which Industries Will Always Need Office?
According to the Department of Labor Statistics, there are many industries that report not being able to work from home. Not to mention, for the industries that can work from home, a portion of the employees still report to the DLS that they cannot. So, even during and after the pandemic, many employees will need to come into the office to work. Below, you will find the primary industries that report they must go into the office to fulfill their job role. This information can help you choose which city to invest in, depending on if these industries are prevalent there.
Construction and Architecture
As you know, construction must be done in person. However, construction workers rarely come into the office to do their job duties since they must be on the worksite. This is why many investors brush off the idea of buying office space in an area near construction companies. But, construction managers do need an office to do their work.
For the most part, the managers and executives of a construction company need offices to do their jobs. In the same vein, those in the architecture field need offices as well. This is due to the software and technology they need to do their jobs. For this industry, upper-level employees need special equipment and tools to come up with blueprints. They also need meeting rooms to collaborate and plan their team’s work. By being remote, many mistakes can be made in the planning process, so it’s vital these meetings happen in person. Any mistake can cost the construction company thousands of dollars. So, this means this industry typically requires office space.
Engineering is another industry that requires its employees to work in the office. Just like construction and architecture, engineers require specialized equipment and software at their desks. There are many different subindustries for engineering, and many require engineers to sit at their desks planning, designing and strategizing. The software and tools needed for many engineers to do their jobs often cannot be brought home, which makes it impossible for them to work from home. So, for areas with many engineering firms, it’s a great idea to invest in an office space.
Many sales offices are open for their employees. These businesses are usually niche-specific such as electronics, paper products and even furniture. No matter what they sell, some employees have noticed how difficult it is to sell products to people over the phone or Zoom. At the end of the day, it’s very difficult to sell a product when someone can’t see it or feel it for themselves. Despite the boom in online shopping, there are many things people prefer to purchase in person. So, sales offices often need to meet in person.
What About the Success of Remote Work?
As you have likely heard, remote work is going very well for many businesses. According to one study, multiple industries are far more productive when they work from home. However, some companies will let their employees come back to the office environment once the pandemic is over. In fact, multiple large companies will let their employees choose whether or not they would like to be remote. For example, companies like Twitter, Airbnb and Qualtrics are all giving their employees options to work from the office once they can open their offices again. About 40% of employees report they are willing to come to the office a few days per week in the future. So, office space will still be in demand, even if remote working is instituted.
Get Around the Remote Working Boom: Purchase a Business Park
An option for investors is to purchase a larger business park, and lease out the space to multiple companies. Many organizations will likely want to downsize their office space as employees choose to work remotely a portion of the workweek. Because business parks are designed to house multiple businesses, it is much less expensive to lease them. So, there is a high chance businesses will move to business parks to save money, a crucial effort in today’s economy.
However, do keep in mind that business parks are not authorized to reopen in many states (as of November 2020). So, this may affect the rate in which businesses lease out your business park. But, once your state has approved people to work at their offices, it is a good time to invest in a business park. Utah is one of the states that is allowing people to occupy office space, as long as they follow safety procedures. Our commercial real estate brokerage helps investors in the Salt Lake City, Utah area, and we can help you find a great office space to invest in. Contact us today to get started!
Having a designated space where you and your employees can perform your daily tasks is important. When you don’t have an organized space to perform your daily duties, productivity can lower. So, purchasing a new office space can be a great business decision. In this blog post, we are going to cover why and when to purchase a new office space.
Why to Buy New Office Space
An office can be defined as a building or a section of a building where a company performs its day to day operations. The office can either be big or small depending on the business. It is a place where employees of a company can come together to conduct meetings and work together. A company can have one main office and also, that same company can have other branch offices that are located in other places.
There are several benefits of having your own office space:
How you present your company says a lot to customers. In particular, it can impact the individuals’ perception with respect to the professionalism of your business. This standard can likewise be applied to when potential customers come into the office for gatherings. Without a physical office space, most customer interactions would be email or phone calls. Whereas with your own business office space, you have a spot that you can feel confident welcoming customers to. This can be important to big customers as well as to make more sales for you.
Training of Employees
Training employees can be done in different ways. Offices give employees an open setting to gain new skills, build themselves and represent the company. It also gives open access to help from team members and superiors. Training virtually is possible, but it can take much longer than it would in an office setting.
The Best Time to Purchase a New Office Space
Now that you know the benefits of purchasing an office space, let’s discuss the best time to purchase one. The first few months after launching your business are stressful. At the start, getting an office may not be a priority because your major focus will be securing your first clients for your business. Hopefully, you will move quickly for a few months, and while it’s stressful and tiring, it’s also beneficial for profits. You can work out of a coffee shop or even at home because your only focus would be on how to make your business grow.
With time, things start changing and your business starts to grow. You are going to find you require a new office space eventually. When you start hiring new employees and have no space to meet with them, there is certainly going to be a need to expand. Below are the following ways to know you are ready to purchase a new office space.
During a Dip in the Commercial Market
Typically, most new business owners are worried about finances when it comes to buying an office space. They need a less expensive space that will meet their needs. This is why a dip in the commercial market is a great time to purchase an office. When there is a dip in the market, an office space will be far less expensive to buy. So, you can get a large, big office for your team at a lower cost. When you hear there is a dip in the commercial real estate market, consider seeking out an office space to save money.
When You Have a Downpayment Ready
You should only consider buying an office when you can afford it. With that being said, it’s best to have a downpayment ready for an office space. Business can sometimes be unpredictable, so you need to make sure you can afford the space, even during slow months. This is why it is often the best choice to put down a large downpayment, so your monthly mortgage is lower. Having a smaller downpayment can lead to larger monthly expenses, which is usually undesirable.
When Your Team Outgrows Your Current Space
Many times, teams outgrow their current office space as they add new members. In this case, it’s best to buy a new office space quickly. A lack of space can hinder productivity and can cause frustrations amongst employees. So, when your team outgrows your current space, it’s time to look for a new one. For example, if you have an office that suits one dozen people, but you need a much larger team now, you will need a new space. While this can be a pain for business owners, it’s a sign of a booming and successful business.
Buying a New Office Space
If you would like the benefits of an office space or your situation matches the best times to buy, it’s time to start looking! However, deciding to get an office should not be done in a rush. You will hopefully be in this new space for a long time. So, pay close attention to the properties and diligently look for the perfect choice. We always recommend using a commercial real estate broker for help with your search.
If you are in the Salt Lake City, Utah area, our team can help you! Contact us today so we can find the perfect office for your business.
Owning a restaurant is an exciting business opportunity and it can generate great income over the years. As easy as it sounds, purchasing a restaurant space is an important task and it should be done carefully. Additionally, there are some factors you should take into consideration when you want to buy a restaurant. Proper planning of a restaurant is crucial so you can save on costs and make more profit. So, in this blog post, we cover what to consider when purchasing a restaurant space.
The Size of the Space
The size of the restaurant is definitely a key characteristic to look at. The square footage you need from a space depends on the type of restaurant you plan on opening. There is a rule of thumb we call the 60/40 rule. When it comes to restaurant size, this rule can make your space much more comfortable. This rule states the dining section of the restaurant is meant to comprise or occupy most of the space in the restaurant. To be specific, about 60 percent of the space should be allocated to dining, while the remaining 40 percent can be shared between the kitchen, storage, and other parts of the restaurant.
An example of spacing like this would be a restaurant that has about 7000 square feet. In this situation, 60 percent of the space (4,200 square feet) would be allocated to dining while 40 percent of the space (2,800 square feet) would be allocated to other sections, such as the kitchen or storage rooms.
The Style of the Restaurant
The style of your restaurant will go a long way in determining whether or not your restaurant will be successful. Unfortunately, there are many cases where the restaurant owner overlooks this factor, and they have to shut down. While the style might not be the entire reason they shut down, it could certainly be a contributing factor. So, your space’s style should be in line with the cuisine that is served at your restaurant. When a person goes to eat at your restaurant, they should feel as though they stepped into a different country, a classic American restaurant, or something else that would be appropriate to the style of food being served.
A typical example of this is when you go to a Chinese restaurant to eat a meal. In a case like this, the restaurant should have a classic Chinese culture feel. The space shouldn’t feel like an American sports bar or a Mexican cantina. It should feel as though it matches the menu being served. This can be accomplished through architecture or decorations. The style of the space truly matters when purchasing a restaurant location. Don’t overlook this factor.
The Parking Options
The parking ratio of a restaurant is another important factor that should be considered when purchasing a restaurant space. The main objective of a parking lot is to give customers a space to leave their cars when they visit the restaurant. Ensuring they have space to park will encourage them to come inside. How many times have you had to leave a restaurant because there wasn’t enough parking for your car? This is why it’s so important to provide enough parking at your restaurant. A typical parking standard for restaurants includes the following:
- <2,500 square feet of building territory – one space for every 100 square feet of a building region
- >2,500 square feet of building territory – one space for every 75 square feet of a building region
- If you have a food truck or a walk-up restaurant where customers don’t stay, allow one space to every 275 square feet of the building.
Having ample parking will ensure more customers come inside and can park their cars comfortably.
The Cost of the Space
When looking for a building to purchase, you must save money where you can. Purchasing commercial buildings can be costly, so look for ways to cut costs to be more profitable. When looking for ways to get a great building for less money, you can consider:
- Locating your restaurant in the suburbs: This is certainly a good idea if you plan to minimize costs. In the suburbs, you can find less costly buildings available for purchase.
- Locating your restaurant in an older building that you can renovate: The idea of doing this is brilliant. It saves costs and other expenses that you would have been burdened with if you had to purchase it. Locating your restaurant in an older building will give you the leisure to purchase other things to make your restaurant look way better.
- Locating your restaurant in a low tax neighborhood: Doing this is cost-effective. When a restaurant is located in a low-tax neighborhood, it saves money because the taxes you pay will be much lower. This can save you thousands of dollars every year. So, find a low tax neighborhood or ask your broker to refine their search to these areas.
Purchasing a Restaurant Space
When purchasing a restaurant, it is advisable to do proper research about the place you want to use. You also need to look for ways to reduce costs. Reducing the cost of your restaurant does not mean your space should be of low quality. It should still look great and feel welcoming to your customers. It is important for you to always have your customers in mind so they are more likely to visit your restaurant often.
If you are ready to purchase a restaurant space in the Salt Lake City, Utah area, please contact us. Our team can help you find the perfect space for purchase!
Many business owners find themselves considering the pros and cons of buying a warehouse. The conversation around buying vs. leasing a warehouse is a common one for business owners because of these pros and cons. Whether or not buying a warehouse is a good idea for a business owner seems to be up in the air. However, we believe it truly depends on your individual situation. In this blog post, we provide insights that will hopefully help you decide whether or not you should buy a warehouse.
Buying vs. Leasing a Warehouse
When you are the owner of a large business that sells products, you likely need a warehouse to operate effectively. Warehouses have the proper equipment and space for you to operate your business and fit your employees. You may need space to store and ship merchandise. Or, you may need a space to actually manufacture products to sell to customers. No matter what it is, selling a large number of goods requires a warehouse to hold them at some point. If you have come to this realization, you may be wondering if the right move is to buy or lease a warehouse. Below, you will find the pros and cons to consider.
Buying a Warehouse
Buying a warehouse is a very big decision for a business owner to make. When you buy a warehouse, it needs to be because you plan on remaining in the space for a long time. Warehouses are a very big investment to make, which means your finances need to be in order before you apply for a loan. However, this doesn’t mean buying a warehouse isn’t a good idea. In fact, it’s a smart investment if you are in the position to make it.
- You own the warehouse, which enables you to operate freely.
- Your property will likely appreciate in value, which earns you money when it’s time to sell.
- You aren’t paying more than what the property is worth, as the landlord needs to make a profit.
- When you are ready to move, you can lease out the space if you want an extra stream of income.
- You don’t have to worry about your landlord increasing the cost of rent before you renew your lease.
- When you own a warehouse, you are responsible for everything, including the roof, utilities, and machinery if anything ever breaks. With renting, these responsibilities are on the landlord.
- Business success is somewhat unpredictable, so you may grow out of your warehouse, or become too small for it.
- You will most likely need to take out a loan to pay for the property, so you need to have your credit score and finances in check before applying.
Leasing a Warehouse
Buying a property to operate out of isn’t as common as you may think. Most businesses operate out of a leased warehouse space, in which a landlord owns it as an investment property. In fact, a large majority of the skyscrapers you see in downtown Salt Lake City are owned by landlords and leased out to businesses. For many businesses and their owners, it just makes sense to lease out a space. Many people don’t want the commitment of owning a property, which is completely understandable. After all, when you buy a space, it is likely because you plan on spending several years at the location. This is very forward-thinking for many business owners, as they plan for their businesses to grow quickly.
- You aren’t tied to the property for decades, or have to go through the selling process.
- You are not necessarily responsible for any issues on the property like air conditioning repairs, pipe repairs, or flooring.
- If your business is booming, you can decide not to renew your lease so you can move into a larger property.
- You will have to move your entire inventory, employees, and machinery to a new location if you don’t renew your lease.
- Your landlord can increase the cost of rent before you renew your lease, which is very common.
- You won’t make a profit on your investment if the property appreciates in value when you occupy it.
- You are somewhat limited to how you customize the space or operate in it depending on your contract’s terms and landlord’s wishes.
Buying vs. Leasing a Warehouse: Which is Best For You?
We hope this blog post helped you develop an opinion on buying vs. leasing a warehouse for your business. Go over the pros and cons, and consider which is best for your plans and business. If you have any questions about whether you should buy or lease your warehouse, feel free to contact us. We would be more than happy to help answer your questions. Our team helps many business owners with finding the perfect commercial property. From our expertise, we can put you in touch with a property and the ideal contract for your commercial needs.
Restaurants are a staple in most cultures and countries. Across the world, family, friends, and co-workers sit down and enjoy meals together in these businesses. Although it can be difficult to stay open at times, as long as you have great food and a great location, you will likely see success. If you want to be a restaurant owner, you probably already have the amazing recipes down. But, what about the fantastic location? If you don’t know what to look for in a restaurant space, don’t worry. In this blog post, we are going to cover five qualities to consider when purchasing restaurant space, so you can serve food in a fantastic building.
What to Consider When Purchasing Restaurant Space
The building you purchase will have a large impact on how your guests feel. If the place is dark, dingy, and characterless, they may not feel compelled to visit your restaurant again. And, as you likely know, repeat customers are what makes a business thrive. So, when purchasing a restaurant space, you will want to be very considerate of your selection. Take a look at the factors below before signing off on a property, so you are more likely to succeed with your restaurant.
1. The Size of the Space
An incredibly important factor is the size of the building you are considering to purchase. The size of a building will determine how many people you can serve at once and how many staff members it can hold. If the space is too small, people may not come if they want to avoid a long wait. On the other hand, if a space is too big, it may be wasted square footage. However, if you find the perfect building and the finances work, you can always turn extra square footage into a party room that people can rent out or for large groups to enjoy. But, do avoid getting too small of a space, so your guests and employees don’t feel cramped.
2. The Feel of the Building
One of the most important aspects to consider is the architecture of a building. Some restaurants were built with a specific cuisine in mind, so the architecture suits a certain style. For example, you have likely seen Mexican restaurants that have a classic Mexican architecture look. Purchasing restaurant space that matches the architecture of your cuisine is a great idea. When it does match, it will give customers a better experience when they dine with you.
To choose a building with the right feel, consider the types of dishes you will be serving. Will it be Italian food? If so, choose a modern building with lots of greenery to suit your menu. Once the space is yours, you can hang Italian art or even have an Italy-inspired mural painted. On the other hand, if you are going to be serving American dishes, consider a classic building with bright colors and a simple design. Then, you can decorate it with pictures from the 80s to give it a classic American diner feel.
3. The Location of the Restaurant Space
Something else to consider when purchasing restaurant space is the location of the building. For one, an easy to access building is very important. When your customers can’t find the building, or they don’t see it regularly, they will lose the incentive to stop by for a meal. If your customers have to drive far away to visit your restaurant, you may see less foot traffic. So, pick a place that is close to your target market and that is easy to find.
Yet another factor when it comes to location is the density of restaurants in the area. If there is a missing cuisine that you can fulfill, then it is a great spot. However, if there are already three other successful restaurants with the same cuisine, it may not be a smart decision to try to compete with them. The perfect location will be an area with other restaurants, but missing your cuisine style. Or, it will be an area near residential areas or shopping, with minimal restaurant options.
4. The Monthly Cost of the Building
One of the primary reasons restaurants fail is because their finances just don’t work. It can be incredibly difficult to predict which dishes will do best, how to price them, and how to make enough profit to afford the monthly payments. So, it is best to keep the monthly cost of a building as low as possible. Some ways to keep costs low is to ensure the building is in a ZIP code with a low cost per square footage. Also, if you can find a building that just needs a few cosmetic upgrades, this can be a great way to save money.
5. The Parking Options For Guests
Another factor to remember, and one that many people forget to consider, is parking options. Parking is crucial to ensure as many guests as possible can visit your restaurant. How many times have you decided to go somewhere else because there was no parking available? Chances are, you have several times. So, try to find a location with great parking options for guests. Remember, the whole parking lot doesn’t have to be standard parking options with marked spaces. A grass or gravel lot behind the restaurant will do the trick as well, or you can get this paved later on. As long as your guests can park safely, it’s a great choice!
Purchasing Restaurant Space in Salt Lake City
We hope this list helps you when purchasing restaurant space! Our team is so excited for you to start your own business and give your community amazing food. If you need help in the Salt Lake City, Utah area, feel free to contact our team. Our expert brokers can help you find the restaurant space of your dreams. We can also help you know what to look for and will keep you informed on what you need out of your space.