We Buy Houses Deals, Australia’s biggest and most expansive network of real estate specialists, provides essential tips and guidelines for neophyte restaurateurs on successful ways to get the right commercial property for their future restaurant business.
Finding the right commercial property where business owners will soon erect their restaurant establishment will depend on many factors. These factors can be pivotal in the success of the restaurant.
Here are the 10 tips from We Buy Houses Deals. These tips are important in helping you to make a sound decision before taking a commercial property. Hopefully, they can guide you on the right decision to buy the future location of your restaurant which will become a great asset and not a troublesome liability.
- It all starts with the budget.
How much you are willing to spend as your starting capital for your establishment should significantly dictate which commercial property you will buy or rent. Scout your target location for listings of commercial properties whose prices are within your budget.
Different states have varying levels of average prices. For example, in Adelaide, prices of smaller commercial buildings may start at around $250,000, while larger buildings may be priced from $600,000 and above. This is not the case in Sydney where prices can be double those amounts. Wherever location in Australia you are targeting, you must firstexplore the current condition on the property market of that area so you will have useful knowledge of average prices.
- Location is very crucial.
Location is very important because it will determine your success when you start in the restaurant business. A strategic location gives you the privilege to market your business to a significant amount of potential customers. Nearby establishments within the commercial property will also dictate the type of people that will contribute to the foot traffic of the area.
There are other considerations on the location such as enough space and parking availability. Your customers will spend enough time to savour their meals and would want to take comfort in making sure that their vehicles are safely parked nearby. Think of more elements about the location that should be available to provide maximum convenience for your future clienteles.
- Zoning laws must also be kept in mind.
Consider existing local laws that are implemented in the location of the commercial space. Think of certain future activities for your restaurant which may be prohibited by these laws. If these activities are crucial in the success of your restaurant business and you will not be able to apply them due to the pre-existing zoning laws, then it would be best to look for other commercial properties in a different location.
- Study the geographic location and nearby establishments.
Establish your restaurant in a location where you can enjoy a considerable amount of food traffic. Strategic location should be a primary concern for starting out in the restaurant business.
Therefore, you should find out what other businesses are present near the location. This will also signify what types of potential clients you can expect for your restaurant. If the business establishments around the location are booming, then chances are you will have a good starting point to lure potential clients. Successful businesses will also attract success to other businesses within the same location.
- Consider the leasing.
For a restaurant business that’s just starting out, leasing the commercial property would be a good choice because this type of business has a higher chance of failure and is short-lived. Leasing provides the restaurateur with the opportunity to use a particular space for a short time. If the business becomes favourable, the lease contract can just be extended.
- Investigate the rent
Only settle with rent value that is reasonable. Therefore, you have to make sure that the rent is commensurate with the prevailing market rate of similar property type and nearby establishments. Learn about the many aspects that will calibrate the rent amount, such as geographic area and size, fit-out of the commercial property, prevailing market price, and so on.
- Be on the look-out for possible hidden costs.
Be very thorough about the lease contract for possible hidden costs. These costs can be in the form of regular maintenance costs which the owner may trick you into shouldering by hiding it in the details of the contract. It can also take the form of waste disposal expenditures, fit-out expenses, etc. Talk with the owner about all the possible expenses and negotiate with him or her.
- Consider ways to negotiate the lease.
Don’t be afraid to negotiate for your future restaurant’s lease. There are many things that you can negotiate regarding the commercial space. Besides the actual monthly rent, you can also haggle with the landlord on other important aspects like who pays for heat or snow removal. You can also talk to the landlord about lawn care or regular maintenance. When these things are prepared early on, you can fully immerse yourself on your actual business in the future.
- Implement a thorough assessment of the commercial building.
Consider the current condition of the commercial building. Is the existing fit-out in poor condition? If it is then you should look for certain provisions within the lease agreement regarding a new fit-out every few years so that you are ensured that the quality of the building and its other assets are well maintained.
You can also hire a professional to assess the commercial building if it is worth it or not. The general rule is to ensure that the building or commercial property is structurally sound. If renovations are needed, then you will have to factor in the estimate cost that will incur.
- Know the importance of a licensed real estate broker.
Most real estate property transactions today have licenced agents who act as the bridge between the buyer and the seller. These agents are very important because they have the educational background, experience, and connections that will make any deal successful and quick.
Agents like the people behind We Buy Houses Deals have years of experience in selling property all over Australia with proven track record of excellent results. They have matched the right buyer to the right seller while keeping the whole process hassle-free, quick, and convenient for both parties.
These agents are important because they serve as the objective middleman who can relay the concerns from the buyer to the seller and vice versa in the most professional, polite, and favourable way. Their line of work enables them to have a connection to useful tools and other professionals which can help the whole transaction to go swiftly and smoothly.
These agents are also knowledgeable of the different laws that govern the commercial real estate market. So they can advise you on the intricate details about commercial leasing and related legal obligations to ensure that you will not face certain complications of legal matters in the future.