I need a new space for my business. How far in advance should I ask a professional space broker to help me locate my new business space?
Some Business owners will wait until 2 or 3 months before moving day. However, 6 months notice to search for the best business location and negotiate the best terms is highly recommended.
If I ask a professional space broker for help in locating my next business space, what should I expect after the initial call?
A professional space broker should meet with you at your present place of business to discuss your needs and requirements. The broker should ask you important questions such as:
- Why do you want to move?
- When do you need to vacate?
- What do you like about your present location?
- What do you dislike about your present location?
- How do you need your office space configured?
- Which geographical area would like to be located in and why?
- Do you need to be close to public transportation?
- Will the business require special zoning by the city?
- Does the business generate noise or emit smells?
- How much parking for staff and visitors is required?
- If a manufacturing space, does it have special electrical needs?
- If shipping and receiving, do you require loading docks?
- If warehousing and storage, what are your height requirements?
- What is your budget?
O.K., I’ve discussed my requirements for my new location. How much does it normally cost to have a professional space broker locate my new space?
The short answer is — nothing. The future landlord normally pays for a professional space broker’s services. However, in some retail space situations the client is responsible for paying the space broker. As in any business dealing, ask!
My space Broker is talking about net rent, net net rent, triple net rent, gross rent, operating expenses, property taxes, business taxes, water tax. I’m not clear on these terms, but I’m shy to ask for clarification.
A professional space broker should always take the time to explain these terms, and all of the leasing process from start to finish. Never be embarrassed to ask questions. The fact is that many tenants, brokers, agents and landlords may have different variations of these terms. A professional space Broker should clarify all terms with the client before continuing with the process of leasing.
I want to sell my business, but I’m not sure what the fair market value is? How do I know what to tell the Business Broker?
The answer… you don’t have to know. Every business will have different net values that are determined by industry standards. A trained Business Broker will know what that value is based on past sales of your business type within the industry.