Is It Better To Build an Office Than To Buy?
If you are a business owner, and you are looking for a new office, you may wonder if it is better to build an office than to buy one. There are advantages and disadvantages to both, but let’s show you what it takes to make the most of both aspects.
Building Your Office
Building your office, on the most simple level, means you can control exactly what you want out of the space. It’s important to remember that when you are building a space, there’s a lot more red tape, which means that there will be specialists that you will have to contact, apply for permits, and ensure that the land is safe in the first place. But this is something that a structural engineer can help with. In addition, there are financial benefits to be had. You can build equity over time. When you accrue equity, you can use this as collateral to expand on your business. In addition, you may want to use it to fund your retirement. The benefits of building also give you the advantage to use tax benefits. You could get an annual depreciation deduction on the property. You are also your own landlord. This has a lot of benefits because you are in charge of your own land, however, this also means it is your responsibility to fix it.
Purchasing a Space
When you purchase an office space, a lot of the issues can be sidestepped. When it comes to the landlord, they’re in charge of the building. But it doesn’t necessarily mean that they are a reliable landlord. You can always choose office spaces that come recommended, but this recommendation comes at a higher cost, which is doubly true if you are renting in busy built-up city centers. While renting office space is perfect for businesses starting out, when you start to build up a stronger vision for the company, you may find that you are outgrowing your space. This is why you may want to consider moving to a bigger space to accommodate the expanding company, or building your own space because this gives you complete control over your location. But when you rent an office space, it certainly sidesteps a lot of headaches.
The big question now is if both are being redundant. Because now, the pandemic has highlighted that many people can work from home, where does the answer lie? Many businesses may be looking to bring their employees back to the office eventually, which means that if you are building an office, you won’t need as much investment, because you can start to hot seat, and have employees coming to the office on a constant rotation. However, if you are concerned about how your business is perceived, especially when you are a struggling startup, you may think that having an office environment bolsters your brand somewhat. Building an office versus renting one can yield numerous positives. However, it’s also worth addressing the current state of affairs and your employees’ attitudes to working in an office environment.
Categories: Outside Contributors