Rick Myers knows what it takes to move a business from here to there. As the president of the Thomas & Mack Development Group, a commercial development company with notable projects throughout the Las Vegas Valley, Myers has advised many businesses that are considering relocation.
When he sat down with Nevada State Bank, Myers offered his professional advice on relocating a business, large or small. Here’s what this successful and experienced authority on business relocation suggests – information that may help smooth the move from where you are now to where you want your business to be.
Understand your business
Relocation takes planning and involves evaluating your business requirements beyond the cost of the monthly rent or mortgage payment. Don’t compromise on anything that may compromise your business, advises Myers. You might be attracted by a low rental rate, but the location might not be best for you. Make sure it’s a good fit.
For example, if you are in a distribution business, are you distributing to the city or the region? “If you sell into the city, you probably should be centrally located. If you distribute regionally, be located near the Interstate, even if the rent is a little higher,” Myers explained. “Choose the best location despite the cost.”
Your location makes a statement
If you are trying to recruit clients or make an image statement, you should make sure that your location projects the right image for your company. ”Choose your new location based on convenient access for employees and customers, and make sure your location makes a positive statement about your business,” Myers said.
Consider business needs
Parking: Does the office site have adequate and secure parking? Where will your staff and executives park?
Power & Connectivity: Does your office have enough power and enough bandwidth? If you are in the suburbs, the location might be peaceful, but the infrastructure to fit your future telecom needs might not be there.
Organizing Your Space: Place furniture and offices in the middle of your space so the window spaces will be available for public/meeting uses. Consider movable walls, which can be hooked and unhooked, providing flexibility for growth and the option of changing the office format.
Plan for growth
Planning is everything as you transition operations from your company’s current location to its new, improved location. Is your business going to grow? Can you expand? What if the landlord only has one building and you want to increase your office space? Should you move to a location with multiple buildings?
Office and industrial parks have the advantage of expandability, said Myers. There’s plenty of parking space. There’s more common area maintenance. Another advantage? The likelihood of multiple locations with the same landlord for expansion or multiple offices.
Know your landlord
There are several kinds of building owners. One is an international trust, which might own 1,000 buildings worldwide. Another kind of owner is an individual investor, perhaps a doctor or other professional. Each has its own advantages.
If you do business in many locations, you might prefer a big landlord with properties in many cities. You may have more flexibility with a big landlord if you need to move into a bigger building as your company grows. However, you are likely to pay more for flexibility.
Maybe you have a personal relationship with an individual investor who owns a building or two. That may be a great alternative for your situation. There is no right or wrong landlord.
Public records show defaults, so do your homework on landlords and make sure yours has a good record.
Things to consider
Here are some other things to consider before moving your business:
- Interview and select experienced professionals to help you: architects, engineers, real estate agents. They know what questions to ask as you move through the process.
- Get a good legal counsel. Lease language has a major impact on your deal. You need a good legal document, whether you are buying or leasing. Does your lease allow you to expand? Terminate? Renew? What is the tenant’s obligation? What is the landlord’s obligation? There are many factors to consider besides getting the lowest price.
- Rental rate: Use your professional team, who should be able to give you a range of options and alternatives.
- Bring architects and consultants onboard early to develop a “space program” before you decide on a space plan. How many executive offices do you need? Do you need a board room for 40 people? Don’t sign a lease, and then think to yourself, “Gee, I should have thought earlier about windows for public spaces.” Knowing these things in advance will pay off in the long run.
Planning ahead, as Myers suggests, is smart business. Ask questions, do your research and make sure your new location can be adapted to suit your future needs.
If you’re thinking about relocating, consider an SBA loan* from Nevada State Bank to help you finance your building. Click here to find out about our loan programs specifically designed for commercial real estate.
NevadaSmallBusiness.com recently sponsored a webinar called “Insights: Fundamentals of SBA Lending.” Click here to see an archived version of this webinar and learn:
- What you need to know before applying for an SBA loan
- Which SBA program could best suit your business
- What to do before you meet with your banker
- What changes have been made recently to SBA loan programs
*SBA loans are subject to Bank and SBA approval requirements.
The information provided is offered for general informational purposes only and should not be construed as tax, legal or business advice. Consult with an attorney or other professional concerning your own needs and circumstances. The views and opinions expressed by Mr. Myers are not necessarily those of Nevada State Bank, its parents or affiliates.