A company’s office space is an expensive and vital investment.
When relocating your business, you can choose to either rent an office space or purchase a commercial property. The choice between buying and renting can have far-reaching consequences for your company. Choosing between buying or renting an office space involves many factors. Here are some to consider.
How do you see your company growing?
When determining whether to purchase or rent office space, it is crucial to consider the expected expansion.
If you run a small business, renting a smaller space might work. However, leasing might be an even better option if you plan to hire more people and require more space soon. If you are still determining what kind of space you will need, it might be more cost-effective to lease at first and then consider buying when growth slows down and expansion is stable.
Is a new location likely ideal for your business long-term?
Customers are a significant reason businesses move. Thus, consider your customer base and whether it may change soon. Relocating your business after buying the office can take longer and be more complicated than letting a lease expire and finding a new place. Buying might make sense if you know the area will be an excellent permanent base for your business.
Does your company have property maintenance funds?
Businesses with limited cash flow benefit from leasing office space because property maintenance is often not their responsibility. If you lease an office building, the owner may pay for repairs. However, you must pay those costs if you own that building. Buying an office space may be an option if your business has a steady cash flow and budget for maintenance.
Is financing available for the investment?
Financing real estate purchases that are intended for commercial use presents unique difficulties. Lenders typically require:
- Strong business finances
- Viable business strategies
- Assets that are suitable to serve as loan collateral
Leasing a property is a common first step for small businesses because getting commercial financing can be difficult. Thus, renting a property may be the only viable option in the beginning stages unless one has private funds until the company attains greater financial stability.
Relocate Your Business With the Experts
It takes much planning and coordination of various factors to relocate a business. Assistance from an experienced business moving company is essential.
The Advance Group is a forward-thinking company and a partner in making your company’s future simpler and more efficient. We offer a single source for move-management and project-management solutions and tailor them to fit your project and operational needs. We have over 50 years of experience and can help relocate your office and get back up and running quickly. Contact us today!