Loading

Factors to Consider When Selecting a Business Location Other Than Rent

How to Choose the Right Business Location
Updated on
September 28, 2021

Real estate is usually the second or third largest expense item for companies.  Logically, then, many businesses focus on economics in a site selection process.  On occasion, however, a business will focus exclusively on the rent at the expense of other important variables.  There are other quantitative factors which also impact a business’ real estate costs, as well as qualitative factors worth serious consideration.

There are many factors to consider in determining its true costs to the tenant.  In addition to the base rent, tenants should consider the following variables in their site selection:

  • Rent abatement and rent escalation
  • Operating expense pass-throughs
  • Tenant improvement expenses and allowances
  • Options (renewal, expansion, contraction, cancellation)
  • Add on factor (rentable vs. usable square feet)
  • Relocation costs

In addition to the base rent, tenants should consider the following variables in their site selection:

Finding the Right Location

  • Location of existing and future employee base
  • Synergy with area’s business environment (particularly important for medical office)
  • Proximity to customers
  • Ease of access
  • Area amenities

Brand Visibility

  • What statement does the property and office make about your company?
  • Who will visit your office?  What conclusion do you want them to reach?
  • Will the facility’s image enhance or detract from your ability to hire quality employees?

Employee Variables

  • Do the majority of your employees live in a particular location?
  • Will your company lose employees as a result of relocation?
  • Which locations provide a sufficient employment base?

Businesses should retain a tenant representation commercial real estate agent to help with their site selection and calculate the true costs of each alternative (the true cost DOES NOT equal rent) and will ensure that important qualitative factors are also considered.

Houston Commercial Real Estate Services

Contact Pride Street Realty for all of your Houston business & commercial real estate needs.

Schedule an Appointment

Additional Financial Considerations
from Financial Experts

No items found.
Factors to Consider When Selecting a Business Location Other Than Rent
How to Choose the Right Business Location, What to consider when choosing a business location, What to consider when choosing a location for your business
Whether your first second, or dream home, we find you the perfect property.
choosing the right business location,
We sell your home quickly & efficiently getting offers for your property.
finding the right business location
We find you the perfect office & commercial location for you.
how to find the right business location
Amazing Luxury Real Estate throughout Texas
how to find the right business location
Find the best residential, commercial & land investments.
deciding on the right business location
We help you relocate your home, business & life to Houston.
houston commercial real estate
Mortgages, Titles,  estates. Learn more about purchases.
how to find houston real estate, finding commercial real estate in Houston, finding commercial real estate in houston
Contact us for help with your real estate sale or purchase.

Texas Real Estate Information & Categories

the right property, the first time
Find your next property

Contact us to find your next property. We find you the best beginner or luxury home or commercial & business real estate opportunities.

Check out these other great blogs & sites

Asault LawBlox NewsComet PhotographyFrankly LegalThe Grizzly BlogCPGIO Ecommerce ServicesPaleo RanchRalliesRemus LawShoeBoysThe ProfessionalistTrustablesXclusive CollectiblesZara Law Group
Free Texas Real Estate Consultations
Houston Realtors, Realtors in Texas

We are looking forward to hearing from you.

contact us

Monday to Sunday
24/7

Address

Pride Street Realty
713-201-5257
Katy, TX 77449
Email

Contact Our Texas Real Estate Experts Today

Schedule a Free Texas Real Estate Property Consultation

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

The Latest from the Walkthrough Blog