Colocation is a business term used to describe the renting of office space in business premises, typically by an independent business such as a sole trader or partnership. Colocation can also be used to refer to the leasing of commercial real estate for the purpose of having businesses operate from it. Colocation services for new businesses can provide various benefits for both renting and leasing commercial real estate. To get more information about colocation services read the article below.
Key Benefits of Colocation Services for a New Business
Rent or lease from a business-friendly real estate provider
When renting commercial real estate, you’ll often be provided with a list of preferred and exclusive real estate partners and landlords you may not have access to otherwise. Finding a business-friendly landlord or partner can be difficult and time-consuming. On the other hand, when you own your own facilities, you can choose the right real estate partner for you. If you’re leasing, you’ll be able to choose between various real estate partners based on their flexibility, terms and conditions, and approach. Furthermore, when you lease commercial real estate, you won’t have to wait for a long and drawn-out process like the purchase of your premises.
Increased brand awareness
If you have a retail location, you can create and display your corporate logo on the shop front or in-house signage. The use of branded materials and in-house signage can increase brand awareness and exposure. This will help to increase your sales and strengthen your image as a reputable business in your local area. If you want to expand your brand and get involved in online marketing, you can use your business’ branded website. A branded website will increase brand awareness, increase online sales and provide a platform to highlight your business’s products and services.
Pay reduced rent or lease
Many landlords offer reduced rent or even rent-free periods for customers who have new business premises. This can be an excellent opportunity for you to get a low rent or even rent-free for a given period of time, or perhaps not have to pay any rent at all for a certain period of time. This can be particularly useful for small businesses with low net profits or cash flow. It also allows you to put down some initial financial capital so that you can get up and running quickly and avoid the challenges of relying on traditional bank financing.
Secure longer-term tenancy
The ability to secure longer-term tenancies can be particularly appealing to entrepreneurs. With the right contacts and the right business deals, it’s possible to negotiate a long-term tenancy on commercial premises. The longer the agreement, the more attractive it is. You can also use this as a chance to negotiate a more favourable lease period and perhaps even a reduction in rent. Holding out for a longer lease period gives you a bit more breathing room to grow your business and perhaps even reduce the amount of rent you pay each year.