I know you’ve been considering how to find the right building for your business. Whether you’re a dentist, chiropractor, restaurant owner or another type of business owner the location, type of business you own and ease of access of your business are the 1st steps to understanding how to know which building is right for you.
After reading this blog you’ll know the essentials to find the most profitable option for your company. Let’s take the stress off of your decision by giving you the solutions to each step in the process of buying a building (or leasing) for your small business.
To start let’s dive into whether you want to buy or lease a building.
Should I Buy or Lease?
Of course, buying your small business location upfront is very attractive for a few reasons. One of the most important factors in the decision to buy or lease is the fact that you completely own the building — which means you can do what you want with the property. Here are a few other benefits:
- You won’t owe monthly fees (rent)
- You’ll be able to lease some of the building (an asset)
- Tax breaks will begin to appear
- The building will increase in value (an asset)
Now, buying does have a few downfalls and when you take a look at the big picture you’ll be more equipped to make the best decision for the future of your company.
- Down payments and closing costs
- Liability insurance in case of an emergency on the property
- The slight chance your property depreciates over time
You’re probably thinking about the pros and cons of leasing at this point. Leasing a business building or small office often means you’ll pay monthly fees to rent the property from the owner. This method of finding a building for your company is good if you’re looking to build credit, need to have a flexible budget, or don’t want to deal with everything that comes with being a property owner (insurance, fixing repairs, etc…)
On the flip side remember that you won’t be able to make any income from the property if you rent it out instead of owning it. So, the decision to buy or lease depends on your business’s finances, your personal preference, and the ability to take care of the property. Now let’s get into the next important aspect of obtaining a building for your small business.
Remember when you bought your house? Or when you were going apartment shopping? You were looking for a beautiful, safe, friendly area. these aspects don’t change just because you own a business. It may be even more important for the safety of your customers and employees.
Beyond safety you also want visitors to feel a sense of ease or excitement when coming to your business right? This is especially important when you’re buying the property instead of leasing it. Buying property in a safe, gorgeous area ensures that you’ll be able to rent extra space out or sell it and get an amazing profit from your property.
Think about the mission and values of your company. You want this to be reflected in the building and location that you choose. This is honestly part of your business’s brand so make the best choice with both your customers and employees in mind.
Affordability is Crucial
Now, even though I just told you how important it is to obtain a good property in a good area I don’t want you to get in way over your head and budget. At the end of the day, you also need to be able to keep your business afloat (profitable) while working on the finances.
Maybe this means instead of buying a huge building with numerous rooms you obtain a small office with 2-3 rooms. The money you spend is also reflective of your location as mentioned, so if it comes down to it your best bet is to go with a small property in an excellent area rather than a large property in a less than perfect area.
Depending on the type of business you own and what kind of actions will occur in the building you may need more space than other businesses. Here’s an example: a chiropractic firm will require more space than 2-3 lawyers who can share a smaller space with a few rooms. This is the time to be realistic with yourself and your business partners.
*When you’re ready to buy or lease a building to house your business contact us so we can assist you every step of the way!*
Keith McLaurin | Licensed Commercial Broker ID#01190109 / NMLS#1209195