Whether a company is opening its first location or expanding into a new market, real estate decisions can have long-term consequences. Yet, too often, business owners make missteps in the process that lead to costly outcomes down the road. Many of these mistakes are avoidable with the right team, preparation, and clarity from the start.

Here are four pitfalls we commonly see that companies should watch for when navigating commercial real estate decisions.

1. Not Hiring a Local Broker

One of the biggest errors business owners make is not working with someone who is deeply familiar with the local market. Whether they choose to go it alone or use a broker from a different market, businesses will more than likely leave money on the table when they strike a deal. A broker who knows the local market can provide insight into recent deals, trends, leasing concessions, and landlords. Additionally, they may miss out on selecting a property that better suits the business’ goals. 

2. Skipping the Step of Defining Space Requirements Clearly

Another common issue is going into a search without a well-defined set of needs. Companies often tour properties before finalizing the specifics of what they need. The time spent upfront better defining the company’s space requirement yields a faster search and, perhaps more importantly, better odds of securing the most optimal space. Without a defined plan, business owners risk signing leases that don’t align with their long-term strategy or operational needs. A thoughtful approach from the beginning leads to better outcomes, fewer surprises, and increased speed to market.

3. Overlooking the Need for a Project Manager

Finding the right space is just the beginning. Once a lease is signed, there’s often construction, and/or a relocation ahead. Many business owners assume they can manage the process internally or delegate it to an employee. All too often, handling a move or the construction process with an internal resource leads to delays and frustration. A skilled project manager takes the pain out of the process and can be essential to keeping everything on track. From bidding and coordinating contractors to managing cost, quality, and schedule, a project manager can ensure that the build-out or move goes smoothly and avoids costly delays. It’s a role that can pay for itself by preventing mistakes and keeping the process organized from start to finish.

4. Not Using a Real Estate Attorney with Local Commercial Real Estate Expertise

Real estate contracts are dense and filled with language that can impact a business for years. Too often, companies either choose not to hire legal representation or to work with attorneys who may be capable in other areas of real estate but lack specific experience in commercial leasing or purchasing. Commercial real estate has its own set of standards, negotiation points, and potential pitfalls. An attorney who focuses solely on real estate in a given market will know “market” terms, where to push back, and how to protect your interests in a lease or purchase agreement. This is not an area to cut corners. Having the right legal partner can make a big difference in the deal you sign.

Avoiding These Pitfalls

Real estate is one of the largest investments a company will make. Rushing through the process or relying on incomplete or improper guidance can lead to missed opportunities, overspending, or long-term frustration. By building the right team and taking time to plan, businesses can avoid the most common mistakes and set themselves up for a better experience. A local broker, a clear definition of needs, a capable project manager, and a commercial real estate attorney are key pieces of the puzzle. Each one plays a distinct role in protecting your interests and helping you make the most of your investment. No matter which local broker you choose to work with, they should guide you through the process and have connections with the best project managers and attorneys in town to share with you.

That said, we’d love to be your local broker in the Charlotte metro area! Call us at 704.219.0908, email Barrett@FowlerPropertyAdvisors.com, or contact us to schedule an appointment using the button below.