Leasing the right commercial space is a crucial decision for any business, whether you’re a startup looking for your first office or an established company ready to expand. Your commercial space isn’t just a place to work—it’s where your business will grow, where customers will engage with your brand, and where your employees will spend much of their time. Choosing the right property can have a significant impact on your business’s success.
In Newfoundland, where the commercial real estate market is unique and competitive, finding the ideal space requires thoughtful consideration of various factors. As experts in the Newfoundland commercial leasing landscape, Related Holdings Ltd is here to guide you through the process. In this blog post, we’ll cover five key factors to consider when leasing a commercial space for your business.
1. Location: Proximity to Clients and Convenience for Employees
One of the most critical factors to consider when leasing commercial space is the location. Your business’s success can heavily depend on where it is situated, and this rings especially true in Newfoundland, where the geography and local culture play a vital role in business operations.
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Client Proximity: For businesses that rely on foot traffic, such as retail stores, restaurants, or service-based industries, being in a location that’s easily accessible to your target audience is essential. In towns like Grand Falls-Windsor, Corner Brook, or St. John’s, being near major business districts or busy streets can greatly increase your visibility and customer base. For those serving clients in specific industries, like fishing or tourism, it may be beneficial to lease in areas known for those sectors.
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Employee Convenience: Your employees are also a key consideration. If your staff has to commute a long distance, it could affect productivity and job satisfaction. Try to choose a location that is easily accessible by major roads or public transportation. The availability of nearby amenities, like restaurants or gyms, can also be attractive to both your employees and clients.
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Growth Potential: Consider how the neighborhood is developing. An area that’s up-and-coming might provide affordable lease rates now, with the potential for high returns as the area grows. On the other hand, being located in an already established business hub may give you the instant credibility and traffic your business needs.
Related Holdings Ltd has properties throughout Newfoundland in key business areas, ensuring that we can help you find a location that fits your specific needs.
2. Square Footage: Space to Grow
Choosing the right square footage for your commercial lease is a balancing act. You want enough space to accommodate your current needs, but it’s also important to think about the future.
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Current Needs: Before leasing a space, carefully evaluate how much square footage you need for your operations. For example, if you run a retail business, you’ll need a mix of customer-facing space and storage for inventory. An office-based business, on the other hand, might need private offices, conference rooms, and break areas.
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Growth Plans: Think ahead. Will your business grow in the next few years? Do you plan to hire more employees or add new services that will require additional space? It’s wise to lease a space that gives you room to expand. Moving too frequently due to outgrowing a location can be disruptive and costly, so aim to find a space that allows for some flexibility.
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Utilization: Don’t forget to factor in how efficiently you’ll use the space. Some businesses might need large open areas, while others can function in more compartmentalized spaces. Understanding your space usage helps ensure that you’re not paying for more space than you actually need.
At Related Holdings Ltd, we offer a wide range of spaces, from small office suites to larger commercial properties, ensuring that your business has the right amount of space to operate efficiently and grow over time.
3. Lease Terms: Understanding the Fine Print
Lease terms can make or break a deal, especially for small businesses or startups with tighter budgets. Understanding the terms of your lease is essential to avoid future surprises or disputes.
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Length of Lease: The length of your lease is a critical component. Some landlords may offer long-term leases (e.g., five or ten years) at lower rates, but committing to a long lease can be risky if your business needs change. On the other hand, short-term leases provide flexibility but might come with higher monthly rates. A flexible lease option, like the ones offered by Related Holdings Ltd, can help you balance both stability and adaptability.
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Rent Increases: Be aware of how rent may increase over the term of your lease. Some leases have fixed increases, while others might be tied to inflation or market rates. Make sure you’re comfortable with the potential increases over time.
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Maintenance Responsibilities: Clarify which party is responsible for maintenance and repairs. In a “triple net” lease, for example, the tenant pays for taxes, insurance, and maintenance, while a “gross lease” may include some or all of these costs in the rent. Understanding the exact responsibilities will help you budget accurately and avoid unexpected costs.
Related Holdings Ltd works closely with tenants to ensure that lease terms are fair and transparent, providing flexibility and clarity to help businesses thrive.
4. Amenities: Supporting Your Business Operations
The amenities included with your commercial space can greatly impact how smoothly your business runs. In Newfoundland’s competitive market, it’s worth considering what extra features are available in different properties.
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Parking: Especially in Newfoundland’s towns and cities, accessible parking can be a major advantage. Ensure that there’s ample parking for both employees and customers.
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Security: For businesses handling valuable goods or sensitive information, security features like surveillance cameras, alarm systems, and secure access points can provide peace of mind.
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Connectivity: Fast and reliable internet is essential for almost any business today. Check whether the property has strong connectivity and if internet providers offer the speeds your business requires.
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On-Site Management and Maintenance: Having on-site management or a quick-response maintenance team can save you time and hassle. Whether it’s fixing a heating issue or maintaining the cleanliness of shared spaces, this support can keep your business running smoothly.
At Related Holdings Ltd, we prioritize offering commercial properties with amenities that cater to the needs of modern businesses, ensuring you have everything you need to operate efficiently.
5. Flexibility for Customization: Tailoring the Space to Your Brand
Your business’s physical space is a reflection of your brand. The ability to customize or renovate the space to meet your specific needs and aesthetic is crucial for creating a welcoming environment for clients and a productive space for employees.
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Renovation Policies: Before signing a lease, check whether the landlord allows renovations and to what extent. Some spaces may come as-is, while others might offer flexibility for redesigning interiors, installing new fixtures, or adding branding elements.
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Branding Opportunities: For retail or customer-facing businesses, the ability to display your signage and branding prominently is key to driving traffic and establishing a presence in the community. Make sure the property provides opportunities for signage that aligns with your brand’s vision.
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Lease Clauses for Expansion: As your business grows, you might need more space or different facilities. Lease terms that include options for expansion or relocation within the same property or landlord’s portfolio can save you significant time and money down the road.
With Related Holdings Ltd, we understand the importance of flexibility. We work closely with our tenants to ensure that they can make the space their own, fostering a strong brand presence and an environment that supports growth.
Conclusion
Leasing commercial space is a major decision for any business, and it requires a careful evaluation of factors like location, square footage, lease terms, amenities, and flexibility. By thoroughly considering these elements, you can ensure that your space supports your business’s goals and growth. In Newfoundland’s unique market, having the right partner can make all the difference. Related Holdings Ltd specializes in providing commercial spaces that are tailored to fit the needs of businesses across industries, helping you find the perfect place to thrive.