Buy or Build: Which Is the Best Option for Your Commercial Property?

Whether you are starting a new business or expanding an existing one, you need a place to operate. There are several things to consider in choosing the commercial building for your venture, including the location, design, and budget. You also have the option to buy or build one from scratch, and the best choice depends on your specific business needs. We listed some factors that may affect your decision on whether to buy or build a commercial building.

Cost

Expenses involved in building a commercial property from scratch include the land where you will construct the structure, the materials needed for the construction, and the contractors who will do the work. You’ll also pay for the installation of the services you need, like power, water, and internet connection. 

Moreover, there are various costs involved in purchasing one that’s already built, including the selling price of the building itself, appraisal, closing fees, and down payment. If you need to add some features or make some renovations, these are added expenses, too.  

Hidden problems

An existing building could have problems that you may not be aware of. Although you may inspect it before the purchase, you may still overlook something. Since you need to fix these issues, you’ll need to spend more than what you expected when you bought the building. 

If you construct the building from zero, you don’t have to worry about hidden problems as long as you work with reliable and professional contractors. Moreover, if there are potential risks, you can immediately plan to prevent them. For example, if the location is prone to landslides, the contractors can install retaining wall systems to stabilise the foundation and keep the property safe for years to come. 

Customisation

If your business does not require a specific setup, you may find a building that could work for your operation. For instance, if you perform general office works, then a property with an open layout would do. You can then decorate it with the furniture and appliances of your choice.

However, if you have a specific office setup in mind or your business requires one, building one would be a better option since you can customise it to your needs and preferences. You have the freedom to create the design or layout you want. 

Time

If you need to start operation as soon as possible, buying a building is a good option. As long as you find one that fits your business needs, with a bit of decorating, you’ll be ready to use it in no time. Building a new structure takes longer, and the duration will depend on many factors, including size and weather. As mentioned, you also need to take care of the service installation. 

Leasing opportunities

You can lease other spaces in your building to serve as additional income. You might find an existing property with extra rooms for rental, but building one would let you decide how many of these spaces you wish to have and where to place them. 

Weigh your options between buying and building a commercial property for your business by considering these factors.