Commercial Space Available, At Bargain Prices
Are you thinking of starting a business? I know what you may be thinking, is he crazy or what, well, let’s think about it. Yes, the economy is in bad shape and there are many businesses going out of business or downsizing. This opens a door of opportunity to the entrepreneur who has a business plan that he wants to move on it, space is available.
Let’s take a look at the commercial atmosphere in south Florida. This slow economy is really causing businesses to take a second look at just how much space they need. Businesses that are dependent on the housing and construction sector are now finding they are reducing their operations and thus do not need the extra space, that is of course under a lease agreement and those monthly bills keep rolling. So what is the answer? They are now trying to sublease this space, some at very attractive prices.
In Broward and Palm Beach counties alone, only about one percent of the 59 million square feet of office and commercial space was available, today the percentage of availability is approaching 2.5 and it is expected to continue to rise. That’s a lot of square footage available, just waiting on someone to make an offer. This is not only happening in South Florida, these sublease opportunities are available everywhere.
When the real estate market started sinking in the beginning of 2006 so did the commercial businesses tied to the industry, (which are many). Real Estate expense and payroll are the toughest expenses for a business to keep up with during down times. Now, these businesses who can hang on providing they downsize, are looking for tenants to take over some of that monthly expense, to help reduce the burden.
I heard a story about a man who wanted to open a restaurant, a deli actually in the south Florida area. There were many restaurants in his area singing the blues, business was down and bad. He knew his deli would be a success because he knew his product and felt it would do well, New York type deli, good food at an affordable price. When he started looking for a place, he was overwhelmed with the opportunities available to him. Either in office space that could be converted or existing restaurant space that needed very little to retro fit. He decided to sublease a pizza place that was barely hanging on. It only took him three weeks to get his New York deli up and running, he has never looked back. Business is good because he is offering value, not only in the quality of the food but in the quantity, the size of his sandwiches is in the true New York tradition, very large. He also has a delivery service that accounts for thirty percent of his business. I was told that today he is considering opening a second deli.
There are many business ventures that will work, even in a down economy. I guess the old saying is true, if you think business is bad, it is. We, as entrepreneurs are constantly thinking of ways to make our businesses better. This is challenging part of owning a business, coping with the day to day problems and figuring out how to navigate around the obstacles we have no control over. When in business, plot your course and keep checking the depth of water under your keel, we will get through these rough times.