How to find the right property to open or run your business
Published June 25, 2025 by Angela Talbot
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Categories:
- Business
Choosing the right commercial real estate property is a crucial step toward the success of your business. Whether you’re a small business owner looking for your ideal space or a real estate investor seeking your next commercial opportunity, the property you select will impact everything from your bottom line to customer satisfaction.
This guide will walk you through key considerations for both small business owners and real estate investors, with insights on financial tools from Webster First to support your decisions.
For Small Business Owners
If you’re looking to open or relocate your business, the right property can be a game changer. Here’s where to start:
Define your business needs
What does your business need from a property? Begin by assessing these factors:
- Size: How much space do you need today, and will that change as you grow?
- Location: Consider your customer base. Is it more valuable to be in a high-traffic area, or is accessibility your top priority?
- Amenities: Do you need parking, storage, or specialized layouts? Tailor this search based on your business type—for example, retail businesses might prioritize visibility, while offices may focus on parking and interior functionality.
- Customers: Will your space need to accommodate customers, or is it strictly for internal use? If you’re running a business that invites customers, such as a retail store or a café, you’ll want a welcoming, easily accessible location with features that create a positive experience, like comfortable seating or attractive displays. On the other hand, if your business operates in an office setting that isn’t open to the public, you can focus on practicality and efficiency—ensuring the space supports your team’s needs with the right layout, technology, and work environment.
Your answers will guide you toward properties that align with your operations and long-term goals.
Leasing vs. buying
Should you lease or buy? Both options have their advantages.
- Leasing: Offers lower upfront costs and more flexibility for businesses unsure about their long-term space needs.
- Buying: Provides control over the property and builds equity, but comes with higher upfront costs and maintenance responsibility.
If you’re thinking about buying, consider a commercial real estate loan from Webster First. They offer flexible terms with competitive rates and can even assist with loans for renovations.
Location is key
The perfect spot is more than a pretty address. Prioritize these factors:
- Accessibility: Is the property close to major roads, public transport, or parking?
- Foot traffic and visibility: High-traffic areas are must-haves for retail businesses.
- Demographics: Does the location match your target customer base?
Market research matters
Before committing to a property, take time to research the local market. Is there a clear demand for your type of business in the area, or is the market already crowded with similar offerings? Start by analyzing competitors nearby—how many are there, and how well are they performing? Study the needs and preferences of the community to determine if your business fills a gap or offers something unique. Tools like customer surveys, local demographic data, and industry reports can provide valuable insights. Solid market research ensures you’re positioning your business for success rather than entering an oversaturated or unsuitable market.
Take the time to research and walk the neighborhood to assess its potential for your business.
Financial considerations
Budgeting is essential to selecting the right property. Here’s a checklist to help you determine affordability:
- Estimate how much you can allocate toward monthly rent or mortgage payments.
- Account for additional expenses, such as utilities, upkeep, and taxes.
- Research loan options if you’re considering buying. Webster First offers commercial real estate loans with a variety of terms to fit your needs.
Being financially prepared ensures peace of mind and keeps your focus on growing your business.
For Real Estate Investors
If you’re an investor, purchasing commercial properties can be a lucrative opportunity. Here’s how to choose the right property for your portfolio.
Understand the types of commercial real estate properties
Commercial real estate comes in several categories:
- Retail: Spaces like storefronts or malls designed for customer-facing businesses.
- Office: Ranging from small offices to full corporate buildings.
- Industrial: Warehouses, manufacturing facilities, and distribution centers.
- Mixed-Use: Properties combining retail, residential, and/or office space.
Begin by narrowing down the type of property that fits your investment strategy and target market.
Location, location, location
An investor mantra for good reason. Prime real estate in high-demand areas attracts reliable tenants and ensures your investment appreciates over time. Look for:
- High-traffic zones: Retail spaces, in particular, perform well in these areas.
- Growing neighborhoods: Areas undergoing development provide opportunities for value appreciation.
Keep an eye on major developments in your region to spot emerging goldmine locations.
Tenant considerations
Reliable tenants are the backbone of successful real estate investments. Keep these factors in mind:
- Seek tenants with a strong business history or stable financials.
- Understand their needs from the property. Are they seeking long-term leases? Flexible terms?
- Create an environment that encourages tenants to stay, such as fast maintenance response times or clear communication.
Happy tenants mean a steady income stream for you.
Financial planning for investments
Investing in commercial properties requires strong financial planning. Key aspects to consider include:
- Securing a commercial real estate loan to support your purchase or renovations.
Webster First’s commercial construction and development loans are ideal for expanding income-producing properties or renovating facilities. Flexible terms make it easier to manage your financial risk.
- Plan for revenue projections to determine appropriate rental pricing.
- Evaluate long-term ROI (return on investment) to decide whether the property aligns with your financial goals.
Financial solutions with Webster First Federal Credit Union
Every step of property selection, whether for small businesses or investors, benefits from robust financial support. Webster First offers services tailored to your needs:
Elite Business Checking
Elite Business Checking includes $0 monthly fees, tiered dividends, and advanced online/mobile banking tools to help you manage your business finances efficiently.
Commercial loans
Webster First provides a wide range of loans to support business and investment goals. Choose from commercial real estate loans, construction loans, or term loans for equipment and expansion. With local decision-making and flexible underwriting, these loans are customized to your needs.
Visit our Commercial Loans page to explore how to make your property dreams a reality.