Investing in Office Space? Leave Room to Grow
Businesses must carefully consider their options before securing office space for the first time. Invest in too much space, and you might be taking on more than you can afford. On the other hand, investing in too little space gives your business no room to grow. Choosing your ideal office space requires some wise decision making on your part. Here are some pointers to help you get started.
Consider Your Long-Term Goals
When choosing your ideal office space, your first consideration should be your company’s long-term goals. Where do you want to be in five years? In ten? Do you want to expand to a new market or franchise? If so, make sure your office space can accommodate growth.
One of the biggest things prospective commercial real estate owners struggle with is choosing a location. Your location is essential because you’ll want to be close to customers, workers, suppliers, and other vendors. Depending on your business type, however, access to highways, shipping lanes, and ports is important as well.
You’ll want to choose a central location where people will want to come to you, but be wary of buying in trendy or “up and coming neighborhoods.” Remember, these neighborhoods could be ghost towns in the next decade. That’s why it’s essential to keep your long-term goals in mind.
Should I Rent or Buy?
The next big consideration is renting versus buying. Which is better? This is another decision that should be based on your long-term goals as well as:
- Your budget. Buying may require a significant down payment, and if you’re just starting out, making this payment may not be feasible. On the other hand, owning a piece of property gives you the option of scaling your business and renting out extra space.
- Your preferences. Ask yourself, would you rather be a landlord or a tenant? Renting out to other tenants has distinct advantages and disadvantages. For example, owning a commercial property opens up a new revenue stream for your business, but there’s also the possibility of tenants failing to pay rent. Weigh the pros and cons before making any decisions.