Through our experience working with clients in all facets of commercial real estate we have compiled a list of the most common mistakes that have delayed or complicated the search for a commercial property.
Goals not clearly defined.
When motivation and goals are clearly defined, your brokerage team is best positioned to get you to your desired outcome. This takes us to our next most common mistake…
Proper team is not in place early in the process.
We are fortunate to be in a metropolitan location in which we have access to the finest experts in their field. Your real estate team should fit your company’s culture and be experts in their area of focus, whether brokerage or architecture or one of the many other areas of expertise. By enlisting their skills and experience earlier rather than later, you will glean from their insights so that you have all you need from day 1, maximizing knowledge and efficiencies in process you might not otherwise have.
All decision makers are not included in discussions.
It may surprise you the impact that your commercial real estate decisions have throughout your company. If all the decision makers get together early in the process and are on the same page, the whole project links to your overall company strategy and the process becomes more enjoyable and rewarding. Include key leaders such as finance, HR and department leaders among others, so that everyone feels heard and you have all the data necessary to ensure your program for the new space is as accurate as can be.
Starting your search before you know your budget.
In commercial real estate time is of the essence. You can spend a lot of time searching for a property and negotiating terms. We’d hate for you to get to the end of the project and discover that it’s out of budget. Figure that out early and use it as one of the pillars to guide your project. You’ll save a lot of time and heartache.
Location is too broad.
Back to saving time. Upon establishing your desired outcomes and budget, you can then narrow your search area to a location that fits within those parameters. This includes the important step of determining where your employees and clients are coming from. The benefit of doing business in an area such as the Twin Cities is that there is a diverse landscape. Each submarket offers different cultures, styles and business climates. Find a couple that work for you and your goals, and you’ll streamline your search.
Not being transparent as your financial situation or needs change.
It’s not uncommon for a business’ needs or financial situation to change during the process of searching for commercial real estate. Most of the time it requires a manageable pivot in direction. With proper communication and transparency, we can often find a solution and stay the course.
Poor due diligence – increasing risk and liability.
Proper due diligence is critical to minimize your risk and liability before, not after, possession of your commercial real estate. Whether you are negotiating the terms of a lease or obtaining the proper studies for the purchase of a property, it’s important to take the necessary steps to mitigate your future liability and financial risks.
Each tenant, landlord or investor we work with has a unique situation. However, each of these mistakes can happen no matter how large or small the client or the complexity of the project. With proper planning, communication and transparency your search for commercial real estate can be a success.