What to expect when leasing commercial real estate in Tampa Bay
New business owners may start out with a home office and need to expand or need a storefront, industrial, or professional location immediately. When it comes to commercial real estate, many business owners find it ideal to lease as opposed to buy commercial real estate for a variety of reasons including cash outlay, opportunity costs, fixed vs. variable costs and more. Many business owners visit Tampa CRE to help determine what is best.
Thinking of Leasing Commercial Real Estate in Tampa?
If it is determined that leasing commercial property is the way to go, then there are certain steps each lessee needs to know…
The amount of space a business actually needs is a complicated subject. First you must identify the amount of space to accommodate your current employees and also account for growth in the future. Since one-year leases are rare in the industry, a business owner must extrapolate for growth in personnel over a 3-5 period, as it is quite inconvenient to outgrow your space and have to break a lease if no additional parcels next door are available. If a business’ revenue is steadily growing 15% per year, then it is easier to project anticipated needs for space.
It is important to note that shorter leases are easier to attain with areas of family-owned property, as opposed to competitive corporate-owned locations.If it is a retail or storefront location, you must also take into consideration the amount of space needed for proper installation of merchandise as well as stock room space. There are other factors involved here including parking, restroom and kitchen facilities.
Another important factor when it comes to leasing commercial real estate is, of course, how much you are willing to spend. After you have determined how much space you need and have accounted for growth, a business owner must then determine certain factors when it comes down to dollars and cents. It can be based on a specific percentage of revenue and in many cases based on the prestige of a certain area. As in the residential real estate market, the sexier an area is usually determines price. If you are a small professional services firm, a business will usually get much less space in prestigious areas like Westshore, Downtown Tampa, or South Tampa/Hyde Park. However, if this firm’s clients (or intended clients) are built within these areas, a prestigious location can prove to be very beneficial.
As we mentioned before, location can play a large factor in size and budget. Often we find location is usually based on proximity to the CEO (or highest ranking official)’s residence – within 25 miles. Depending on the type of business, location can be restricted by zoning.
Your Commercial Property Tampa Realtors
If you are in the process of evaluating your current commercial property for sale or lease or seeking a commercial property in the Tampa, Brandon, Riverview areas, contact the commercial real estate team at Century 21 Elite Locations at (813) 960-0999.