How Bad Commercial Spaces Hinder Your Company's Growth

The choice of a commercial space often has a major impact on business operations and, ultimately, its success. When looking for a commercial space, affordability often becomes the driving force. But the rental rate should only be one factor in choosing a space for your business. The wrong location, layout, amenities, or other factors could hinder your company’s growth or even sabotage your business. Let’s consider some of the many ways commercial spaces influence business growth.

External Factors to Consider When Selecting a Commercial Space

Inexperienced business owners may focus too much on the business space itself, without considering external factors that can be important to the success of your business. Consider these external factors before committing to a commercial lease:

  • Accessibility: Can customers easily get to your business and is there enough parking available? Is it accessible for people with disabilities? If your business is inaccessible, it will most likely hinder growth.
  • Potential Market: Is the space close to potential customers and/or employees? Will the local market support your business? A growing area is usually good for business while a declining area might torpedo your business growth in years to come.
  • Local Services: Does the local area provide all the services your clients might need? If you routinely host out-of-town clients, are there hotels and transportation nearby?
  • Local Planning Changes: Are there upcoming construction projects or zoning changes being considered that might affect your business? If the road is torn up for months or years, will customers still come?
  • Competing Area Businesses: How will local competition affect your sales?
  • Other Area Businesses: Is the business climate favorable to your business? 
  • Location Desirability: Is the area improving or going downhill? This is very important on long-term leases and can spell doom for an otherwise profitable business.

Internal Factors to Consider When Selecting a Commercial Space

Every business is different, and space configuration and needs vary. You need a space that works for your business type and the culture you want to encourage. Many factors in your commercial spaces influence business growth and climate: 

  • Do you need private meeting rooms or a large open space? The types of spaces available can have a big influence on your business. Will you require an office space redesign to provide enough office cubicles and a productive work environment?
  • Is there space for each employee to have desk space? An open floorplan improves collaboration, but employees may need privacy and space.
  • How many meeting rooms are needed? 
  • Is there room for employees to relax and regroup?
  • Does the location provide enough space for growth? A crowded space can cause work distractions and strangle long-term growth.
  • Is there space for collaborative working?
  • Can foot traffic flow through the space properly?
  • Does the space have the required services you will need for growth? High-speed internet, ample parking, or shipping docks may be needed to sustain growth. A location without needed services can be bad for business.
  • Are the facilities adaptable to your business? Installing a kitchen or making other major changes to the property can be expensive. A property needing major renovations could siphon off money needed for business growth.
  • Do current zoning rules allow all aspects of your business? If you need zoning changes, you could waste time and money on a space that will not accommodate your business.

What to Look For and How to Choose a Commercial Space

When choosing a commercial space, consider the long-term growth of your business. You need a space where your business can be successful, but also a space that supports growth. A long-term lease on a small space that meets your current needs can prevent growth as the business becomes successful. Likewise, a poor neighborhood or changing business climate in the neighborhood can limit your success. Looking ahead to your long-term business needs and the future of the proposed space can help you avoid choosing a bad commercial space that could prevent future growth.

Lack of Common Areas Affects Business Culture

How employees interact reflects the business culture and is partially affected by the spaces where they work. Good workspaces serve many purposes, including:

  • Places for employees to concentrate and work individually as needed
  • Common spaces for employee engagement and collaboration
  • Support work-life balance and employee well-being
  • Satisfy the basic needs of employee competence, relatedness, and autonomy.

Poorly designed spaces can negatively affect employee attitudes and work performance, while a well-designed space supports improved work flow and employee satisfaction. Think carefully about your work culture and how your employees will use the available space and that enough common areas are available to support a good work environment.

Inefficient Storage Spaces

Storage spaces are important in the work environment. Records, inventory, etc. must be kept, but no one wants to see the clutter. Likewise, each employee needs space to store personal items and work product. Ample, but discrete, storage spaces are required to keep the business running and provide for employee needs. 

Bad Spaces Can Prevent the Efficient Flow of Work

Working in a crowded office space is often difficult. While each worker may have their own cubicle, the space is often noisy and cramped. Constant keyboard clatter, computer dings, and chatter from phone conversations can cause work distractions and lead to more employee stress.

Likewise, combining workers of varying responsibilities and talents in the same space leads to conflict. The casual atmosphere in such spaces can lead to problems when some employees are working hard to meet a deadline or trying to focus on a project. Noise and interruptions get in the way of productive flow of work.

A well-designed workspace is less stressful and more productive. Employees need to relax and feel comfortable in the workspace.

How Your Office Space Impacts Employee Well-Being

A good work-space arrangement prevents conflicts when each person has room to spread out and work comfortably. Designated private spaces for phone conversations or quiet focused work allows employees to find peace and calm when needed while still participating in the work culture.

Anne Barer

About Ro Crawford

Ro has extensive background in several sectors of the Real Estate industry including residential and commercial assets. Ro is responsible for developing a comprehensive marketing plan for each property as well as managing the company’s social media accounts. She designs, writes and edits offering memorandums, press releases, proposals for new business, eblasts and more. For questions, comments, or suggestions related to our blog, you can contact us via our website.