Whether you’re looking to start up a brand new business or your tried-and-true venture is just looking for a space upgrade, the choice between buying or building a commercial space can be a challenging one — especially in today’s market. There are many factors to consider, including your business’ unique needs, what’s available in your target region, and the behavior of the market during the particular time you’re looking to make your choice.
Here are a few things to consider when choosing between buying or building a commercial property.
Timing
The first question to consider is how urgently you need your new commercial space.
New builds have many moving parts, meaning that their timelines can fall anywhere from 6 months to a year if everything goes according to plan. Add on pandemic-era administrative and permit delays, materials shortages and supply chain challenges, and you can easily tack on extra time to your construction project. If your spacing needs are urgent, a lengthy deadline (especially one that can so easily change depending on factors outside of your control), can be a challenge.
Sure, today’s used commercial real estate market has its own challenges. It can take time to find the right space, negotiate the price, procure the proper permits and inspections, and close on the deal.
Both processes take time of course, but depending on which option you choose, you could be waiting 12 weeks or 12 months to have a move-in ready commercial space.
Cost
You’re likely looking for an upgraded commercial space because you want to do what’s best for your business. Since only you (and any other business partners you may have) know the ins and outs of your company, only you can make the determination on which approach will work best for your unique business and its current operational needs.
Does your business require certain amenities or layouts that make buying used properties extremely difficult? Then there’s no sense paying through the nose for costly upgrades on an existing property. Making an upfront investment to customize your from the start could end up saving your business a lot of money, maximizing your real estate investment. Plus, the opportunity to build in extra space helps you future-proof your business and can provide an extra source of income should you choose to lease the space out to another business owner.
On the other hand, if you’re just looking for run-of-the-mill office space or a standard restaurant layout, it’s likely with enough patience you’ll find something that will meet your needs.
Whether Building or Buying,We’re Here for You
No one knows your business better than you. At NAI Mid-Michigan, we’re here to help you find the resources and tools you need to help your business thrive, no matter what your goals are. We have decades of experience in commercial real estate. Our expert advisors know what it takes to solve your toughest real estate challenges.
Call us today to learn more and connect with our team.
