Are you considering building out a space for your business? Whether it’s your first time seeking a commercial home for your business or your company needs a new location to grow, here are five things you need to consider before you get started on your project.
1. Location, location, location. The old saying in real estate still rings true. Having a location that is convenient for your customers and your staff is essential. If your business accepts or ships deliveries, proximity to major roads and interstates will also be a plus. You could have the most perfect building design with lots of amenities, but if your business is difficult to get to, your prospective clients and employees may never find you.
Another factor concerning location is the municipality within which you’ll be working. Your construction company will need to have a firm understanding of the codes of the city or county where your business will be located. Having this knowledge—and local relationships—can fast-track the process of getting your plans approved and your build-out started.
Depending on your business needs, you may also want to be looking at commercial space in areas with heavy traffic and lots of growth. Examining demographic information and population projections will help maximize the potential of your location.
Protein Snack Shop in Smyrna, Tennessee
When the Dow Smith Company team thinks of build-out locations, we’re reminded of local favorite Protein Snack Shop. Owners Dana and Sonny Hampton were renting commercial kitchen and retail space when they first started their business in 2018. Due to their immense popularity, Protein Snack Shop soon needed a new home.
We helped the Hamptons find—and then build out—2,000 square feet at 879 Seven Oaks Boulevard, Suite 620 in Smyrna’s Seven Oaks Business Park. Not only will Protein Snack Shop’s new space help them accommodate their many current customers, but it will also allow them to grow well into the future.
2. Budget. Lots of us were taught as children that it was impolite to talk about money. But, the sooner you can have this conversation with your build team, the better. Our economy is facing supply chain issues and labor shortages, regardless of industry. So, it’s best that clients are clear about what they want out of their space from the beginning. And, ensure that your contractor is clear about how much that will cost. Getting on the same page regarding your budget from the start will ensure a smoother process throughout the build-out and fewer cost surprises at the end of the project.
With commercial build-outs, you also need to have a good understanding of who is paying for improvements—you or your landlord. Determine which things are “white box improvements” or items that are your landlord’s responsibility, and which items come out of your pocket. Landlords will typically pay for things that will be useful no matter the tenant, including lighting, restrooms, and air conditioning. Tenants usually pay for things that are specific to their business like flooring, painting, and furnishings. Some landlords may even offer a tenant improvement allowance. Be sure to have these conversations up-front so everyone is on the same page from the get-go.
3. Custom features and must-haves. In many commercial spaces, you may find you’re starting with a blank canvas—an open space with a concrete floor and some windows. You’ll have to select flooring, paint, walls, and appliances for your business, just to name a few. For some companies, a few offices and a lobby will do the trick, but others are more complicated.
For example, Dow Smith Company works with a lot of dentists and we have realized that those in the medical industry usually require custom solutions for plumbing, heating, and equipment. Because we understand those needs and have relationships with specialty equipment suppliers, we know how to budget and plan for those kinds of projects. Ensure your contractor has experience in your industry, especially if you need special accommodations for your space.
4. Realistic timeline. A typical build-out can take two to three months to complete. In a high-growth area, construction companies are busy, so they may not be able to get to your project immediately. With the current state of the economy, be aware of and plan accordingly for long lead times on both labor and construction materials.
5. The importance of experience. Dow Smith Company does 10 to 15 build-outs per year. When we become involved in the beginning, we can provide a budget to help you understand all the costs associated with your project. The earlier we are involved, the sooner we can get a handle on the needs of all the stakeholders, which can even help you to better negotiate lease terms with your landlord. Many times, Dow Smith Company will serve as a liaison between the landlord and the tenant, working closely with both parties to ensure a smooth build-out experience. Our construction process allows us to plan ahead and get started earlier than other contractors, which means you’ll get into your new space faster and with fewer headaches.
If you’re thinking about building out a space for your business, give us a call before you get very far down the road. We can help you find a location, work out a budget, determine which features are a must-have for your business to thrive, and establish a realistic timeline for how long it will be before you can have a ribbon-cutting ceremony at your new place of business. Even if you’ve sketched out an idea on a cocktail napkin, that’s plenty for us to work with. From there, we can start the conversation about how long it will take to bring your ideas to life.
