If you’re a business owner looking to expand, you might have to choose between renting commercial property or building something new. The purpose of this post is to weigh all the pros and cons and provide readers with an insight into the best move to make. Without this information, you would struggle to work out which options helps you to get what you need, and which enables you to save as much cash as possible. Considering that, read the points made below and then use them to make the right decision when you need to expand.
The pros of renting commercial property
- You can gain access right now
- You can negotiate on the rental costs
- You aren’t always responsible for repairs
- You can walk away at the end of the contract
There is no getting away from the fact that renting offices for your company holds many different advantages. Apart from the ones listed in the bullet points above, you will also encounter some tax benefits. For instance, the money you pay in rent each month will go down as an expense.
The cons of renting commercial property
- You only have access to what’s on the market
- You could get evicted from the property
- You might not be allowed to make too many alterations
- You will probably have to move again at some point
There are lots of downsides to renting warehouses or offices for your operation, and they were some of the significant ones. However, you also need to think about the fact that you will spend thousands every twelve months without ever owning a single brick of the building.
The pros of building commercial property
- You keep full control over the design
- You’ll save money
- You won’t have to move
- You won’t have to pay monthly rent
If you decide to build a new office or factory from scratch, you can ensure it’s fit for purpose. That means designing the building in a way that allows for expansion, and guarantees you won’t have to relocate again in the future.
The cons of building commercial property
- You have to find the money
- You might have to wait for planning permission
- You have to manage the job
Most people think the hardest part about building new commercial premises is that you will have to raise the cash. However, development finance is available in some instances, and you can always ask the bank for a loan if you don’t have enough money in your accounts.
With a bit of luck, you can see from that information that there are lots of negative and positive elements you need to consider when deciding between renting or building premises for your business. In most instances, it’s right to say that creating a new office, warehouse, or factory from scratch is the best option on the table. However, it’s also the solution that involves the most effort and work. So, just take a look at the condition of your brand at the moment and consider your status when making that decision.