10 Things To Consider For Commercial Property Buyers or Tenants - M

Looking for a commercial space for your business? What do you have to take into consideration for requirements before approaching your broker? Taking the time to iron out what you need will save you time in the long run. Besides if you don't plan properly then you plan to fail! Read on!

  1. When do you plan to move in? - There are cases where existing commercial spaces are already occupied by an existing tenant. Based on their lease contract they may choose to stay or vacate the premises. Knowing when you need to be able to physically use the property is key so that the right property can be identified. The last thing you need is identifying a property, purchase equipment to fit the space only later on to find out that the existing tenant will continue to stay for a longer period of time.
  2. How much frontage do you need?  - Know how many meters you need up front so that clients will be able to see you should you be a sales oriented business and need foot traffic or clients who drive. If you are unsure of the frontage you need, then look at existing businesses that meet the length up front and then measure them. There are cases where frontage is not important like if you run an online business and just need the commercial space to run an office. This may also include specifications if you need to be located on the ground floor or if you don't mind a non-ground floor unit.
  3. How many sqm do you need? - Just like frontage you need to know how much area you need to run your business. For such cases best to consult with an architect to work out spaces that are needed be it a restaurant, bar, office, etc.
  4. What type of business are you running? - Certain lessors are very picky when it comes to tenants that permitted to setup. So it is good to disclose what kind of business you will be setting up so that your broker will filter the listings accordingly. I have come across the following from various lessors:
    1. no staffing agencies - security concern for such
    2. no 24/7 operations - cases where some buildings are not equipped for such
    3. no gaming companies
    4. no business that has high volume of traffic - security concerns for other tenants
    5. no heavy cooking allowed
    6. only wholesome businesses allowed
    7. and the list can go on and on
  5. What are your preferred locations? - As with any business, top priority is location location location. Best to find location where your target clients always frequent. A number of times I get requests coming in and people say Makati and the question I throw back at them is where in Makati? Makati is huge. You need to also be specific if you need the property along the main road or don't mind a property that is a block away from the main road.
  6. How many parking slots do you need? - Depending on the type of clients or employees they may need parking spaces. Please disclose what is the optimal number of parking spaces that are needed.You can actually be creative also in the fact that you can buy some or lease some as needed.
  7. What are your business or operating hours?  - although called out earlier, just want to stress you need to let your broker know times that your business will open and close. Either the landlord (lessor) or neighboring community may have specific restrictions that may run contrary to what you want to do.
  8. Does your business have specific requests required for the property because of the type of business you  run? - this includes special requests like specific air conditioning, sound proofing, security features, building accreditation like PEZA or CEZA, etc.
  9. Any other special requests? - If you are particular when it comes to fengshui call this out as a requirement so that regular shaped units, facing direction and location considerations like tumbok and facing direction will also be considered.
  10. What is your budget and terms? - Let your broker know what is in your financial plan for rent, escalation rate acceptable if any. Ultimately this will impact your return of investment so good to call this out to your broker up front. Also factor in expenses like association dues if part of a subdivision or condo corporation as well as VAT in case property is already classified by BIR as commercial or an ordinary asset.

Hope you enjoyed reading this post. This will help you put some thought into defining your requirements before contacting your broker.

Here also is a video to help out also

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