By relevant I mean, is your location working for you today and for tomorrow? Is it bringing in traffic that is your desired customer base? Is traffic flow and parking easy for your customers to drop by frequently. Is it near other areas your customers typically shop so you are always a visible reminder to these customers? Does the interior and exterior vision send the message you desire to your market?
Do you rent or own? Obviously renting has advantages and may make moving an easier decision. And if your lease is expiring, should you consider renegotiating your lease to include the options offered with new locations in your area.
Real Estate Agent Strom Thurman, Cumming, Georgia, offers the following advice:
“Many commercial property owners have been forced to cut their leasing rates and offer added incentives to deal with high vacancy problems. As my clients are nearing the end of their leases, I am encouraging them to renegotiate their leases, consider relocating to a better location or even purchase commercial real estate.
“Companies with leases expiring or possibly nearing the end of the term should at least consider relocating. With vacancy rates in some of the most prestigious locations running very high, a move to one of these locations could be a real possibility for many company owners,” says Thurman, who works in the Atlanta suburbs.
What about your present location in 5 years? What is the town/city plan for development and how will that effect your location? Or what is your landlord’s plan to enhance if you lease? If you own, is it worth updating or is it time to consider buying or leasing a new location and selling the old one?
Trends to look for:
- Does current occupancy bring in customers you need?
- Do you have a voice in who the landlord brings in such as non-compete, but complementary style business?
Staying vs. Moving:
- Is the move worth the return on investment?
- Will a new location bring large expenses to make it work?
- Are existing rent/mortgages vs. new in your favor?
- Are there relevant tax advantages, both short and long term?
- What will be your return on investment in new location vs. present location?
- What are differences in lease agreements, both present and new?
- Selling/Leasing existing location and possible overlap with new location.
Mike Morton, owner of Michael & Co. Jewelers, is a Florida jeweler who has recently been exploring options. “To establish an everyday clientele as opposed to just a tourist clientele,” would be a driving factor Morton says, to determine a new location for his business.
By looking into the future of your business location, you may benefit from writing a list of pros and cons specific to your area and business. This information will assist you in negotiations if you decide to stay at the current leased location as well. Also, this will assist you in being proactive and not reactive since your business will profit long term from your decisions.