Once a business grows, profits increase and with that, the team also increases. With all the team expansion, you may also require a bigger space to operate in a more efficient manner.
In most cases, having a commercial space after you grow is the best practice to make further improvements to your work culture.
There are two basic ways of doing this: you can either lease a building or purchase it. Either way, you will get a space to operate from. However, another struggle is finding out which method suits you most.
Your business, its nature and the budget you’ve divided for space will define your approach towards acquiring a commercial property.
To make the most suitable decision, take a hard look at some of the main factors mentioned here that would impact you:
Location is the most important thing for any commercial or residential real estate investment. The location of your office space is as important as the location of your home.
It depends on where your customer base lives. If you’re in an industry that serves locals, then try your best to find something around the heart of the city.
Here, purchasing might not be the best option because spaces in crowded areas are more expensive.
In other cases where offices operate for clients remotely, it gets easier because bigger spaces a few kilometers out of the city can be purchased at lesser costs.
On the other hand, if you purchase a giant space and in a few years, your company has to make a move you might have to sell it at a loss.
Do You Want to be a Property Owner/Landlord?
It is comparatively different to devise a budget for a leased space.
Because when you’re renting or leasing a space, costs like maintenance, repairs, and insurance are included in the lease agreement and are paid by the owner in most cases which gives you a financial cushion.
While if you purchase a property, these costs are your responsibility and have to be paid in time regardless of your financial condition.
You should do a cost by cost comparison for both leasing and purchase a property before deciding on one.
Owners are bound to make an annual budget for all the fees separately. Major repairs are also a setback many owners have to face.