Myths plaguing the commercial real estate industry and deflecting investment decisions aren’t new. Here are four myths revealed by realty experts at Forum Properties, whichcould be subconsciously clouding your judgment:
The Digital Marketplace Is Replacing the Traditional Business
Ecommerce is huge. The retail e-commerce sales worldwide amounted to 2.3 trillion U.S dollars in 2017, but the total retail sales in 2017 was $22.640 trillion (5.8 % over 2016). The increasing ecommerce and cross border sales has been only facilitating the retail spending. The retail space offer “sensory experience”, which the ecommerce won’t.
Many commercial spaces are rebranding to attract and adapt them to the changing consumer preferences with respect to the “sensory experiences”. Commercial rental spaces are offering a buying experience than just products. There is perhaps an increasing need for retail convergence – bringing together of retail and ecommerce.
Commercial Brokers Know Everything
Not all commercial brokers possess the required industry knowledge of commercial estate and businesses must do some research by themselves. Moreover, questioning the broker over his field experience does no harm either.
The broker is good at finding customers but may sometimes lack industry insights and market insights owing to the lack of experience. These factors are important in finalizing the ideal location for specific business needs.
Office Designs Aren’t Important
Most commercial spaces thrive on the designs. Innovation in this space is treated as an edge over the others by consumers and employees alike. Perhaps, one of the most remarkable transitions in the consumer’s mindset has been the fondness for designs. The sensory experience derived while shopping has become one of the key factors in converting purchases.
Commercial Spaces Are Long-Term Binding Contracts
With the advent of new firms in the commercial rental property, they are all binding the best contracts.These are usually short and transparent. Usually, long term lease contracts are priced lesser than the short term lease contracts. The plausible reason to choose short term lease contracts can be the flexibility over the business operations.
If a business was to ever exit or shut down its operations, it could do so without incurring the fixed costs of the capital to minimize the losses. If the firm were to own the property, the fixed cost of the capital would be recurring in the form of mortgage loans and insurances.
Commercial rental properties are considered to be expensive,but smart investment decision and inspecting the commercial spaces can help in getting the right deal. Most businesses make the common mistake of searching rental spaces online; however, no amount of surfing the web can replace field inspection of the space and its neighborhood. The office space reflects the brand’s culture and every brand today is trying to make its voice heard in the overflowing market. Hence, trusting experienced commercial brokers and binding on the brand value of the commercial rental property is sure to get your business find its ideal space.