There are multiple advantages to having a physical base for your business. Although online shopping and remote working are more common than ever, many companies still need commercial premises. If you run a business and you’re looking for a new place to call home, you may be wondering whether it’s best to build, buy or rent. In this guide, we’ll highlight the pros and cons of each option to help you decide which route to take.
Building a Business Base
Building a business base is more complex and time-consuming than buying or renting, but it can pay dividends in the future. The main benefits of this option are investing in real estate, reducing expenses in the long term, and having the freedom and flexibility to design a purpose-built space. You can also be more selective in terms of location and personalize the premises to suit your brand and target customer.
The best thing to do if you’re thinking about building a store, office, warehouse or unit is to meet with experts and discuss ideas. You can also get inspiration from browsing galleries and looking at professional building firm portfolios. The obvious downside to building is that it takes time. During the consultation phase, you’ll get an accurate idea of the time frame. The duration of the project will depend heavily on the scale and complexity of the project.
Buying Commercial Real Estate
Buying is a great option for business owners who want to invest in a physical space. Buying often makes better financial sense than renting in the long term and it also gives you scope to customize the design and make changes. If you choose to buy ready-made premises, you’ll also save time compared to building a brand-new base.
Key factors to consider when buying commercial real estate include location, market trends, costs, and saleability. If the location is a top priority, research areas extensively and tailor your search to suit your primary objectives, customer base, and budget. If your business doesn’t rely on footfall or passing trade, it’s best to avoid central locations, as prices are usually much higher.
Renting Business Premises
Renting is a popular option, especially for new and growing businesses. Leasing premises offers speed, convenience, scalability and flexibility, and it can also make prime locations more affordable and accessible. You may wish to think about renting if you’re in the early stages of running your business, you need to be in the center of a town or city and you can’t afford to buy, or you’re unsure whether you want to stay in the same place for a prolonged period. Taking on short-term contracts enables you to move with minimal hassle.
The main disadvantages of renting business premises are cost and a lack of freedom to alter the space. Renting can be more expensive, especially over a long period, and you’re putting money into somebody else’s account rather than investing in your own property. If you lease a building, you’ll also have to abide by the terms of the rental agreement.
Many business owners still want or need a physical base for their company. If you’re on the hunt for new premises, you may be considering whether it’s best to buy, build or rent. There are pros and cons for every option. To help you decide, it’s important to think about your budget, the type of building you’re looking for, your design vision, and your business goals.
