Choosing an office space: Why a center is not always the best choice for everyone

The most important thing when leasing commercial space doesn't necessarily mean having a business center in the epicenter of the city, as Rockefeller said. For entrepreneurs, the center is a place where competition is not too high, where they are visible to their customers, where space serves them, not them to space.

According to 4zida.rs portal, Belgrade has the highest demand for space and offices, followed by catering facilities, commercial buildings and warehouses. Specifically, visitors to this specialized site most often look for premises preferably seven times than the next category, namely offices. "The 4Zida website currently has about 4,500 active commercial real estate rental ads, of which almost half are related to Belgrade, followed by Niš and Novi Sad," says Aleksandra Mihajlović, the portal's PR representative. According to her, as far as Belgrade is concerned, the largest supply of commercial real estate is in the municipalities of Zemun, Novi Belgrade, Vračar and Stari grad. "Of the 2,000 advertisements in Belgrade, 592 relate to premises, 230 to offices, 325 to warehouses, warehouses and bases, 11 to catering facilities, 4 to production sites and 61 to commercial buildings," she cites the figures.

A logical question arises, why do some properties in Belgrade remain on the listings for a long time? What is the reason - unrealistic price, bad conditions regarding the value or something else? "Almost all category A buildings, regardless of the part of the city of Belgrade where they are located, are rented in a relatively short period of time. The main reason is comfort and full service (parking, restaurants, stores, reception, maintenance). Category B and C should be more profitable and in line with market needs. One of the reasons that commercial spaces remain vacant for a long time is that they are not properly maintained, they lack a good heating and cooling system, they lack parking spaces, unprofessional management... Very often the owners are individuals who are not VAT payers, and all this increases the costs of the future tenant," explains Nenad Stojanovic, director of the real estate agency R.E.A.L. Consulting Nekretnine from Belgrade.

What should be considered when renting premises?

He is joined by MilanвЂokić, Development and Cooperation Manager at City Expert. As he says, there are several things to look at when leasing a space: whether the landlord is the owner or at least authorized by the owner to conduct real estate transactions. "Then it should be borne in mind that in the case of a lease by an individual, the taxes are paid by the landlord, while in the case of a lease by a legal entity, this obligation is borne by the tenant. Of course, the key is the lease agreement, which should definitely be submitted to a real estate agent or attorney for review to protect the interests of both parties," he adds.

Entrepreneurs beware

Of course, in addition to price as a key factor, the type of business a commercial tenant chooses also influences their choice of commercial space, and this is where entrepreneurs should be especially careful.

What determines the price of a commercial space?

Alexandara Mihajlović from the 4Zida portal reveals that the price of renting commercial premises is primarily influenced by location, especially when it comes to premises suitable for stores and catering establishments, while in the case of offices, in addition to location, the price is influenced by their attractiveness, parking and other amenities available in or near the building. "For catering establishments, it's also important whether a commercial space has a terrace or parking lot, whereas for premises, those with a suitable storefront are more interested in those that have a suitable storefront," she says.

Mistakes in negotiating with owners and managers

According to the experience of our interlocutors from City Expert, the most common mistakes tenants make in negotiations with owners and managers is a lack of empathy and understanding of the mutual understanding, which applies to signing contracts. Indeed, if the demand is high and one is just starting a business, one needs to consider the competitive offerings and the strength of the brand. "The best ways to counter depend on the opportunity: a bigger financial offer, paying up front for a few months, signing a long-term contract, getting to know your business and the prospects it offers. Consider also the condition of the room. If a significant investment is required - provide your landlord with specific estimates. In this way a compromise can be reached in terms of price, length of lease, rate of rent payment, and all parties will be satisfied - financially, commercially and as a partner," concludes MilanвЂokić from City Expert-a.

Finding the right location, the right premises and a landlord who will understand the specific needs of the business is a complex process that often requires the help of professional real estate agents, which is always the best solution. However, if some entrepreneur, especially a beginner, doesn't have the money for such a service, much of this important information can be found online, and it's free. So arm yourself with patience, look for specialized sites and forums, and read BIZLife tips such as this one.