https://www.tdisdi.com/wp-content/uploads/2019/07/header-web-live.png 0 0 tdisdiHQ https://www.tdisdi.com/wp-content/uploads/2019/07/header-web-live.png tdisdiHQ2010-03-17 09:55:272010-03-17 09:55:27The Commercial Real Estate Market Will Affect your Business
We have all heard the statement that “No man is an island”… no statement could possibly be more accurate when it comes to your business and the economy!
We are all painfully aware of the Home Real Estate crisis that exists around us, it is in the News, on your computer, radio and probably on the streets you travel littered with real estate FOR SALE signs!
Well, what if I was to tell you that there are those economic Brainiacs that tells us that Commercial Real Estate may be next? Look around and ask yourself…”What is the status of commercial rental space in my market?” Then also ask yourself: “How do I turn these lemons into lemonade?”
The answer may be as simple as first of all reaching out to your landlord and asking for “some consideration.” But before you do, make sure you do your homework. Have some examples (internet research could be step one, then start phoning around for competitive figures) and be prepared to cite specific examples with contact names and phone numbers to back-up your proposal. If you happen to be in the enviable position to be able to relocate your business to take advantage of what can amount to huge savings in rent, therefore lowering your overhead and your break-even point and therefore the threshold for profitability you will love this market. When it comes to real estate particularly commercial real estate rental it is a buyer’s market.
So let’s say you do your homework and find BIG SAVINGS in relocating your business? Not so fast Sparky! Let’s think this through. Saving money on rent is great but not if your customers do not know where you have gone and cannot easily follow you. Start with putting a plan together not just for the actual physical move but more importantly to make sure your customers move with you. Negotiate now and if the peak season is just ahead (as it is for most of you in the North American market now reading this) it may be wise to shop now, lock in, and delay your move until the fall giving you this whole season to tell everyone you come in contact with that …HEY WE ARE MOVING! Put signs in the store, include it in every flyer, e-mail you do and every single even. Heck put it on your business card with the new address on the reverse side!
So what is the moral of this story? If you are going to move to save some money, make sure you SAVE your business and that every past customer and every new customer know where you are!
Here are a couple of side notes to think about: a moving SALE before you make the BIG MOVE may be a money maker. Did you know many Retailers outside of diving make it a BIG BUSINESS of moving sales; often buying product just for the moving sale? Heck sometimes they may even get overstock on consignment at the end of the season from vendors that maybe went too heavy in a particular item. This maybe a great time to move your worn rental units and start not only with a store with a fresh coat of paint but also a nice new instructional locker!
One last thing, before you get carried away do your homework, start here https://www.realtor.org/research/research/topicreports it is just a starting point but a descent one. Do a search and you will find a plethora of material on this subject.
Easier yet, pick up the phone and give us a call, maybe we can help you think it through. Break out a piece of paper, put a line down the middle and start weighing the positives and the negatives, it worked for Benjamin Franklin it will also probably work for you.
Here is the disclaimer mumbo jumbo. Before you decide to shave your head get a piercing and apply everything in this article to your business, think it through, talk to your staff, other business people in your community and, most importantly, your professional advisors such as your CPA and Attorney, I’m happy to say I’m neither! This article is intended to generate some thought. Drop me a line and let me know if it worked; creating some thought that is!
Nestor Palmero is the BOD representative for SDI, TDI and ERDI and can be reached via email at: firstname.lastname@example.org