By Soniya Gaonkar on Dec 10, 2021 6:04:49 PM
A few decades ago, when the competition wasn't as fierce as it is today, most of the offices in the city used to be concentrated in a particular area – the downtown area of the city. So, there wasn't much thought that business owners were required to put in while buying an office space.
However, the situation has changed now. The number of businesses has increased and so has the number of business centers sprawled everywhere throughout the city. As a result, in the 21st century, buying or renting a commercial space has become a part of the company's business strategy.
Accordingly, while investing in a commercial office space, companies must consider their present and future economic situation and strategic needs, assess the location's business potential, and examine the value that the space will add to their business in the long run.
Having said that, before you book a space in a particular business tower, you must ask a few questions that will help you make a strategic choice for your business and reap value for your investment. We've consolidated ten essential questions you must ask before you buy a commercial space in a business tower near Pune.
10 Questions to Ask Before Buying an Office Space in a Business Tower in Pune
1. What Kind of Offices Are Available in the Business Tower?
This is one of the first questions to ask before booking office space in a commercial complex. Although the choice depends on your business and the kind of space you are looking for, it is prudent to assess the available options.
Ideally, a business complex must offer multiple types of multi-sized offices to suit varying office space needs. For instance, while it should have spaces for corporate offices and startups, it must also offer spaces for restaurants and retail stores. Nevertheless, you must assess the available options thoroughly to make an informed and well-suited choice.
2. How Fruitful Is Buying an Office in This Location?
Location matters! And it matters a lot. For example, suppose you are an upscale restaurant or a retail store offering elite brands. In that case, you need a location, which has localities comprising affluent residents who can afford to buy the products you sell.
Similarly, suppose you are a consulting startup with high-profile businesspeople as your target segment. In that case, you will need an office that matches your reputation, makes them feel comfortable when they visit your office, and form a positive opinion about your overall approach, credibility, and capabilities.
3. How Accessible Is the Location?
Accessibility is another essential factor to consider. Your business location must be accessible through multiple roads and by multiple means of transport for your customers and your employees. Accessibility undoubtedly matters in the long run. Many potential customers may avoid visiting you only because your office or store isn't easily accessible.
Similarly, you might fail to retain employees only because they find it excessively difficult to commute and make it on time to the office! Both these situations can result in potential business losses.
4. Does This Location Have a Sustained Demand and Potential for Business?
What's in demand today may not necessarily remain in vogue tomorrow! Accordingly, there's no point investing in a location that's already excessively competitive or which is rapidly being replaced by people who aren't your target customers.
So, you might enjoy some amount of business for some time. However, the future might not be as promising in the long run. As a result, your business will suffer. A significant part of your investments will go down the drain and you will have to reinvent the wheel. It will, in turn, lead to the loss of a considerable number of resources and time.
5. What Kind of Amenities and Facilities Are Offered in the Business Tower?
With time, visitors' and tenants' demands have evolved. Business towers aren't what they used to be a couple of decades ago. Today, a business tower is expected to be up-to-date and equipped with basic infrastructures such as a security workforce, advanced security systems, a courteous and well-staffed front office, a lavish lobby, high-tech elevators, adequate water supply, power backups, sufficiently large parking lots, allocated parking slots, etc. to ensure convenience and comfort.
6. Who Is the Developer of the Property?
With a trustworthy developer come various benefits such as superior quality and reliable construction, modern amenities, and the strategic location advantage (as renowned developers are capable of buying or developing properties in prime locations jointly). Hence, you must invest in a commercial space built by a reputed developer.
Additionally, you must also inquire about the developer's reputation, previous experience in building commercial complexes and review other projects across the city to better understand the developer's mettle.
7. Who Else Has Bought a Commercial Space in the Business Tower?
It is always wise to check who your neighbors and co-tenants are. It isn't that a business tower should only have reputed companies or global corporations as its tenants. However, it always provides a sense of security to have some.
Nevertheless, what matters is whether others from various businesses have invested in the tower or not. You shouldn't hesitate to ask this, as it is your right to know with whom you would be sharing the complex's space.
8. What Are the Lease Terms?
Yes, this is another crucial question if you are about to lease the space. Why is it so necessary to check the leasing terms, though? For instance, a long-term lease may provide security against the lease costs; however, they will lock your investment for a certain period. On the other hand, short-term leases won't block your capital in the long run. But then, they make you vulnerable to lease cost increments that happen over a while.
So, the developer must allow you to choose the lease agreement that suits you the best to safeguard your investments.
9. Does the Property Have a Guaranteed Income Period?
Some properties offer a guaranteed income period that assures investors about their income over a while. So first, check if the property offers it and if it does, verify if the commitment makes sense. To do so, compare the guarantees with other properties in the vicinity, specifically in terms of rental demands. Further, examine the demand for such a property in a particular location to vet the guaranteed income period commitment of the property owners.
10. What Is the Exit Strategy?
The exit strategy is another crucial consideration. Prefer buying a commercial space that offers a flexible exit strategy. A long-guaranteed income period featuring remunerative yields signifies the most ideal conditions for a flexible exit strategy. It allows investors to exit at any stage during the investment cycle and offer buyers lucrative conditions on proven development. You may not find such flexibility in shorter guaranteed periods, as in situations like these, the investment conditions for resale may not be as attractive.
Best Commercial Spaces for Sale and Lease Around Pune at Kohinoor World Towers!
Kohinoor World Towers (KWT) is a massive AAA-grade commercial project shaping up on the horizon of Pune and PCMC. The project, strategically located between Chinchwad and Pimpri, is an incredible investment avenue with several multi-sized offices for sale and lease.
The project features five towers spread across nine acres and a High Street to make it a perfect place for business and enjoyment. So, from startups to retail stores of global brands, KWT is slated to blossom as a prominent and potentially promising business hub near Pune. For details, connect at +91 20 6764 1818.