Criteria For Selecting Premises For Your New Business

When starting a new business, one of the most critical decisions you’ll make is selecting the right premises. The location and physical space of your business can significantly impact its success or failure. Choosing the ideal business premises in Frederiksberg (in Danish, it is “erhvervslokaler i Frederiksberg”) involves careful consideration of various factors to ensure it aligns with your business goals and caters to your target market.

Actions with real estate always involve the participation of two parties: the lessee, and the landed proprietor, or the buyer and the seller. All business processes are somehow connected with the lease or purchase of space intended for production, storage, implementation, and organization of the workflow.

For these purposes, premises are more often rented or bought than built by the owner. For example, the vast majority of medium-sized business owners prefer to rent premises in business centers or on the ground floors of a building rather than build their own office.

Finding a suitable room in terms of parameters and characteristics is always associated with certain difficulties and can take a lot of time.

In such cases, it is useful to contact agencies for the sale and rental of real estate, which, as a rule, have an extensive database of properties. Or use the Lokalebasen service, which contains various options for renting and buying.

Criteria Selecting Premises New Business


In this article, we will explore the essential criteria to consider when selecting spaces for your new business.

Renting Or Buying

You need to compare and analyze to understand what is best for your business. Typically, you’d have to make a down payment of 10% to 40% of the property’s value.

If the best solution for your company is to choose commercial properties for sale (if your company is located in Denmark, then it will sound like erhvervsejendomme til salg), use the Lokalebasen website to search.


When renting commercial real estate, you can choose a room in the part of the city you need. As a rule, there are more options for finding a place to rent than to purchase.

When renting commercial real estate, you often do not need to worry about repairs, decoration, or the equipment of the premises. Commercial real estate for offices is fully prepared for an early move. All you need to do is move your things and start working.

In addition, if repairs are needed or some other problems arise, the owner of the property will solve them unless, of course, the breakdown was not your fault.

However, there are also disadvantages in this matter. Renting office space in the city center and in new, comfortable office buildings is very expensive and often does not justify itself. In the long run, renting office space is not always profitable.

Besides, monthly rental payments are entirely dependent on the owner of the property. He may suddenly raise it, he may find better tenants, and you will have to urgently look for other options for premises. Unlike a purchased space, you cannot change a rented space globally.

And also, questions may arise if you want to change from one area to another quickly or if you want to return the deposit and rent fee.


Your own real estate significantly increases the company’s rating, both in the eyes of customers and banks. Buying your own real estate is a kind of guarantee that the business is sustainable, profitable, and successful.

And banks find it much easier to give loans to a company that has its own real estate, under which you can arrange a pledge.

Having bought his own property, the entrepreneur will no longer depend on the mood of the landlord, and will not worry about raising the rent or changing the terms of the lease. Your own premises can be equipped exactly as your business needs them.

If you do not need the whole space for your company, you may sublease some parts. According to Nolo, the typical investment returns between 6% and 12% annually.


Requirements for the size, functionality, and location of business premises depend on the type of activity and the specifics of the business. Choosing the location is the first thing to consider while searching for a commercial space. It is one of the most important criteria!

For a retail outlet or sales office, natural traffic and transport accessibility are important. For warehouses, a crucial aspect is logistics.


Ensure your premises are easily accessible to customers, employees, and suppliers. Evaluate proximity to major roads, public transportation, parking facilities, and any necessary amenities.


Study the presence of competitors in the area. While some competition can be healthy, too much saturation may pose challenges. Assess the market demand and saturation level to determine if the location can support your business.

Remember The Rules

Compliance with local regulations and building codes is critical. Review the zoning laws and permits required for your type of business to ensure that the space meets all safety, accessibility, and environmental standards. Failure to follow the rules can lead to legal problems.

Facilities And Communications

Infrastructure and amenities play a vital role in keeping your business running smoothly. Assess the availability of utilities. A reliable Internet connection is also critical, so consider having a high-speed Internet connection and network infrastructure. Also, consider nearby facilities as they can increase convenience for both employees and customers.

Size And Scalability

Estimate room size based on your current needs and future growth projections. Make sure it has enough space to comfortably accommodate equipment, inventory, and personnel.

In conclusion, selecting the right premises for your new business requires careful consideration of various criteria. Remember that the right premises can contribute significantly to the success and growth of your business, so take the time to research, analyze, and make a well-informed choice.

Criteria Selecting Premises New Business


If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.