Whether you’re a new business looking to open your first location, or an existing business hoping to open another one, signing a commercial lease can feel daunting. There’s a lot to consider when selecting a commercial space, and making the wrong decision can be a costly mistake. A feasibility study will save you from making it.
As the name suggests, a feasibility study centres around a simple but important question: is this feasible? From a commercial space standpoint, it helps save you time and money by assessing the practicality of a space. There are a lot of unknowns that must be considered before signing a commercial lease. A feasibility study sheds light on them to make sure that you’re signing the right one. Putting it bluntly, if your space can’t support your needs, it’s not the space you need.
A feasibility study answers several project critical questions – while also giving you recommendations to assist with landlord negotiations.
Critical Questions Commonly Answered with a Feasibility Study
- Building Permit & Zoning requirements
- Square Footage requirements
- Power & infrastructure requirements
- Test Fits or Schematic Layouts (to assess whether your programming and operational requirements will fit in the space)
How a Feasibility Study Will Increase Your ROI
Time is money. In the case of a feasibility study, spending the time will either save or make you money. Thoroughly reviewing a space before you sign a lease will help you identify potential challenges, risks, and opportunities associated with a space. For example, if you’re in the retail or fitness sector, a feasibility study will allow you to plan for predictable revenue based on square footage. Whereas if you’re looking for office space, the assessment will assure that your workplace requirements fit within your desired location.
A feasibility study gives you a detailed Scope of Work that outlines your needs – both in the lease and the scope of the project. It assesses the viability of your space by helping you define your goals while identifying potential obstacles.
At Cutler, we recommend that clients have a high-level budget and schedule to ensure that their project is achievable. The best space for your business is the one that meets the needs of your business.
Contact us today for a no-obligation assessment of any commercial space that you are considering.