Few opportunities in life are as fun and challenging as being the owner of a growing small business. As your sales grow you will find your business in a state of transition, quickly adding staff and equipment until at some point the need for a larger commercial space becomes apparent. At that point one decision will affect the future success of your business more than any other: Do you need to buy an existing commercial building so that your current operations can expand, or do you need to build something specific to the needs of your business? This article takes a quick look at the factors affecting that decision.
Building a new facility and buying an existing building both have pros and cons. In weighing the pros and cons and how they fit within the larger business goals of the company, the savvy business owner considers all of their options and chooses the right path. Several factors must be diligently considered during the decision process including both the short and long-term goals of the business and the state of the local commercial real market. The amount of cash on hand is also a major consideration in choosing between buying and building. Making the wrong decision can seriously handicap a small business and limit its long-term success.
If your new commercial space needs are urgent then buying an existing building is the way to go. While the transaction to purchase an existing space does take some time, it is nothing compared to the timeline needed to purchase and build a new structure, especially if rezoning is needed.
It is also important to understand the local commercial real estate market before making the decision to buy or build. If you are in a buyer’s market there may be plenty of options available on the market where the existing building will fully meet your business needs. However, in a seller’s market the options may be very limited, and even the best options available may need additional buildout to make them work for your business.
The building inspection provides information about the existing structure that you will need to consider before buying an existing building. If the inspection report is a long list of issues and code violations then you will definitely need to factor in the cost of repairs and maintenance to the bottom line of your final decision to purchase. A quality building inspection can save you from being stuck with a “lemon” property with costly recurring issues.
Building a space to the exact specifications your business needs can be a huge plus for a company struggling to find an existing property that is adequate. The added control and flexibility can in some cases greatly offset the additional time and cost of developing your own property.
When building you must hire a team of experts to help you in making the right decisions. A surveyor, architect, zoning attorney, real estate agent, and other professionals all do their part in ensuring that you pick the right site and design and build a space that will accommodate all of your growing business’s needs.
In conclusion, buying an existing building is best when you need to move quickly and the needs of your business are easily met by a number of properties on the market. However, if you have the time and money to build a custom solution for your business and there are limited properties on the market that meet your business needs then building is definitely the way to go.
We Can Help
Whether you’re looking to lease, buy, or sell commercial property, now is still the time to do it in Atlanta. The Meridian Real Estate Group has been assisting commercial clients for well over a decade and would love the privilege of earning your business. Our goal is not just to help our clients with a transaction, but to support the building of financial legacies through real estate. Call us today at 678-631-1723 or visit us online at www.themeridianway.com. We look forward to serving you.
By John Rose, Realtor
The Meridian Real Estate Group