Buying a commercial building for a business is a big decision. With major changes in the job market and across all industries, many small business owners are making changes in how they run their businesses. The global pandemic has meant massive changes in the real estate market, too. With things in flux, it can be hard to know what to do when it comes to making major business decisions. At the same time, there are ways to capitalize on open commercial real estate spaces and more. For a few things to consider when it comes to whether to purchase a commercial space for your small business, read on.
Think about the costs of maintaining or upgrading the property.
One reason many business owners prefer to rent commercial space as opposed to buying it is that properties can be expensive to maintain. One way to know if buying a property might be a good idea for you is to look not only at the real estate but what it would take to bring the location up to your needs. When shopping for commercial property, take an inventory of upgrades and things you’ll need to do to make the space best serve you and your customers.
Maybe you live in Texas and need a space with a large parking lot to open a used car lot. Perhaps you’ve found a great office space but the parking lot needs an upgrade. Calling a place like Semper Fi Striping for a free estimate ahead of time would be a great way to know if the space could work for you. Their professional stripping crews can offer parking lot striping at an affordable price and could make a difference in your decision.
Other costs to consider when thinking about buying a commercial space include public liability insurance, ground and unit maintenance, janitorial services, and building insurance.
Look at your overall business model.
One great way to make a decision on whether to buy commercial property is to take a closer look at your business model. If you’re like most business owners these days, at least part of your business is run online through the global market. Take a look at your tax folders, daily workload, employee habits, and bottom lines to decide if the space is necessary. For some business leaders, even in a company with remote workers, commercial space is needed to warehouse items. Now might be a great time to buy out abandoned office space for that purpose alone.
Consider what other professionals in your field are doing.
It’s always a good idea to watch other businesses and see what’s working for them. If you know of other companies in your industry and are seeing trends, it’s important to pay attention. Do some research on how other companies are making use of their space, product distribution policies, and more. For example, if you’re working as a hairdresser and visiting people in their homes due to the Covid-19 pandemic but are seeing other salons open their doors, now might be the time to make the leap. Paying attention to what others are doing will keep you in line with the competition.
At the end of the day, your decision on whether to buy a commercial space for your business is a personal one. Only you can determine if a major deduction on your tax return is worth the risk of buying in an uncertain market. Whether you decide to buy a commercial business space to expand your business or opt to rent a similar location, knowing you’ve done your research ahead of time will give you peace of mind when it comes to your final decision. Best of luck to you in your future business decisions. Trust your instincts.