What to Consider When Renting Business Premises?

Renting new business premises is a major step for a company that requires careful consideration and strategic planning. Priit Poks, the head of Silikaat Technopark, shares valuable advice that helps make better decisions when choosing business premises, whether it's for retail, manufacturing, or other business activities.

Location is key

Location is one of the most important factors that affects the overall success of a company. It affects customer flow, logistics, cooperation with partners, employee satisfaction, and the company's reputation. If employees have an easy commute to work, their satisfaction and productivity increase. You should also consider accessibility by public transport or alternative means of transportation, especially in urban areas and locations with good infrastructure.

In addition to the aspects mentioned above, free parking facilities give business premises an advantage that can significantly increase business space attractiveness for both employees and customers, providing convenience and added value.

Technical requirements

Ensure that the rental business premises meet your company's technical needs. Special attention should be paid to electricity, water, and gas infrastructure. In municipalities bordering Tallinn, many so-called greenfield developments have been built, where construction takes place on vacant land. In such cases, the infrastructure for energy sources is usually guaranteed to provide minimal required capacity. Minimal electrical power, minimal water demand, minimal gas quantity if any. Building infrastructure is simply expensive. Unfortunately, in the longer term, this can be a significant growth constraint for companies that use the building as tenants. The picture is significantly different with energy carriers in so-called brownfield developments, where old production territories are being developed into new technoparks. Typically, such locations have considerably larger volumes of electricity, water, and gas. Also, as the company grows, it is easier to obtain additional capacity.

One cannot overlook energy security, that is, possible alternatives if one energy source becomes very expensive. The most common solution is solar parks on building roofs, which not only reduce energy costs but are also an environmentally friendly solution. Today, it is wise to choose business premises with better energy efficiency levels, as they help reduce maintenance costs.

Space possibilities

Different business activities require specific space usage. When selecting production and warehouse space, the load-bearing capacity of floors is an important factor. Sufficient load-bearing capacity allows safe and efficient use for heavy machinery and storage of large loads. Additionally, important factors are the size and height of doors appropriate for the field, as well as storage height.

Silikaat Technopark in Tallinn, Männiku

Facilities and services

Carefully analyze the offered facilities and services. Security systems and security personnel can be important when renting warehouse space to ensure the protection of your company's assets. Manufacturing companies may need special facilities such as loading docks and ventilation systems. However, do not forget the balance between rental price and additional costs. Also inquire about daily property management and regular building maintenance, as these directly affect business space performance and costs.

Lease terms and flexibility

Business changes over time, so it is important to find business premises that allow for future expansion and adaptation to changing needs. Read the lease agreement carefully and pay attention to flexibility. Flexible leases can be a major advantage, allowing the company to respond quickly to changing conditions. In most cases, warehouse and especially manufacturing company leases are quite long, 5-10 years. However, it is very difficult to predict a company's growth curve over such a period. A very significant advantage in making a rental decision is the possibility of expansion in the future. Flexibility in a completed development is quite limited if the buildings are fully built. In earlier stages of development, it is easier to find opportunities. Also make sure you conduct a background check on the property owner to ensure a smooth rental relationship.

Making a final decision on renting business premises requires thorough analysis, which includes location, technical needs, facilities and services, and lease terms. Do not forget to consider the peculiarities of your specific field and city. Choosing the right business space can play an important role in your company's success and growth.