Businesses large and small routinely face the decision-making dilemma associated with choosing commercial space. Buy or Rent is not a quandary faced only by startups and young companies.
Unfortunately, the decision-making never really becomes simple but is instead based on the best assessment of the current financial position and future projections. The only “best advice” is to assemble all the numbers and weigh your options carefully before committing to any one course of action.
Gather the Facts and Numbers
Enlist your accountant, and/or a tax attorney and legal adviser, and delve into the details of your current assets and liabilities, cash flow position, sales and income history and future projections, current expenditures, your existing lease terms if you’re renting, the commercial real estate market in your area, and any other variables that apply
There are, of course, pros and cons on both sides.
Signing a lease means that you know for the foreseeable future (the term of the lease, and sometimes beyond) what your monthly fixed costs will be. That can be a comforting reality for a company.
The benefits of buying, however, revolve around equity-building and future return on investment. If you have the cash and the credit standing, buying can be a way to a secure future for a company, just as it is for individuals.
Another option is to buy land, and plan — now or in the future — to construct an office or commercial facility. The time, logistics and planning involved in a commercial construction project can, however, be daunting.
Remember: Change Takes Time
But the reality is that, no matter what your decision, no change can happen instantaneously. If you’re currently renting, the time left on your lease can be time well spent. Tenant improvement needs are frequently a part of a move to newly leased space, just as any building you consider purchasing might require commercial remodeling services.
If you’re currently bursting at the seams and beginning to explore options, why not also consult with construction companies in Albuquerque NM that are equipped to help you design and develop new space that will be more suitable.
Whether you ultimately decide to buy, build new or lease, we will be happy to offer you pertinent advice about construction and renovation options. Why not add us to your list of trusted advisers if you need tenant build-out and improvement services? Contact us for more information!