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Zoning, Building Codes and Permits
Does the business you intend on running out of this property comply with the necessary zoning requirements and building codes? Have you acquired the necessary permits? Some important information regarding Edmonton’s Zoning Bylaws can be found here.
See case “Fire & Flower v Development Authority of the City of Edmonton” in which the Development Permit application was refused because the setback from public lands (Jackie Parker Recreational Area) is only 47 meters, instead of the required 100 meters as required under Section 70.5 of the Edmonton Zoning Bylaw. The development ended up being granted, but the time lost and money spent by Fire & Flower in court in order to get this overturned could have been saved, had they been aware of the zoning requirements of the different areas within Edmonton, and chosen a different location that conformed to Edmonton’s Zoning Bylaws.
Legal and Financial Issues
Is there a lien against the property? Have there been any legal disputes over this property in the past, and if so, are they still ongoing? What are the lease terms?
Security and Safety
What are the crime rates in the area? Is it necessary to have security hired either 24 hours a day, or during all times that no workers are present? This could be a substantial ongoing overhead cost. Does the building have the required emergency exits and fire safety/suppression systems, and if not, what is the cost of getting them installed?
Location
Is the property visible to potential new customers, and accessible by foot/bike/public transit (depending on the type of business you are purchasing property for)? What is the proximity to key markets, such as customers and suppliers/vendors?
Noise and Vibration
Is there any frequent noise pollution or vibrations from a nearby airport, train, or nearby business? Do any of these things have the potential to disrupt your business?
Commercial Rental Properties
If this is a property you plan on renting to another business, what is the market rent potential? What kind of tenant stability or turnover should one expect? Could a high tenant turnover rate lead to frequent/costly renovations, or income instability? If this property has existing tenants, are they good tenants? (Do they pay on time, and take good care of the property?)
Market and Economic Conditions
What is the state of the local economy? How much direct competition would your business have if it were to start operating in this area?
Future Growth and Development
What are the long-term market trends in your industry? Is there potential for a future move to an even larger space that you cannot yet afford or justify? If so, what may the resale value be? What might the demand for this property be? Will it be difficult to resell?
Lease Smarter, Not Harder
By leasing the right space to begin with, you can avoid many common construction pitfalls, saving time, money, and frustration. Start your search with a clear understanding of your business needs and invest time in evaluating each property thoroughly. Partnering with experienced real estate agents and commercial general contractors can further streamline the process, keep you on time and on budget, and ensure you choose a space that sets your business up for success.
We encourage you to continue reading more Key Considerations by following the link to our Internal Factors below.
