Buying an Office Space? Here’s What You Should Know before Making a Deal
It’s important to remember that buying an office space is very different from buying your dream home. With your dream home, you have to pour your heart and soul into the process. This isn’t the way you should pick your commercial building or space. You can get discouraged by peeling paints when choosing your home, but that doesn’t work when you need office space. You have to use less emotion and more common sense when investing in a commercial property.
As always, when it comes to people selling properties, it’s all about the money they can make off it. Keep this in mind when you start to negotiate offers for the property. Sure, it may be annoying that the real estate agent and property owner are trying to best you, but kick your emotions to the curb and focus on the goal of getting what your company needs.
Inspect the Building or Space
Before you make an offer for the commercial space, get help from a professional in inspecting the property. One of the most important things that you have to check is the plumbing system. This is a common problem in commercial spaces. Leaks in plumbing can usually cause the tenants to file a complaint about your management. In your own office, work will be disrupted because of plumbing problems, such as water coming out of the pipes under the sink or the inability for them to use the restroom. Therefore, it’s important to contact a plumbing service to check for leaks and other potential issues.
If it’s an electric problem, it’s even more important that you renegotiate the terms of the offer. Electricity problems are usually expensive. This isn’t something you want to spend on once you take over the ownership of the property.
Pick the Right Location
Choose a location that is right for your business. It shouldn’t necessarily be a prime location or in the middle of the business district. It has to fit your business. If it’s a warehouse, it doesn’t have to be in the city. But if you’re an artisan café or a high-end boutique, you have to be in the thick of things. But remember that even in the city, you need to pick the right area. High-end retail stores have no place in university towns, just as hardware stores do not have to be in the strip of malls and cafes.
What other things should you consider when picking the location? Is it a reasonable commute for your employees? If it is difficult to access but is the best location you can afford, you can think about providing in-house accommodations for your employees, especially those who take public transportation. You may even allow a hybrid work setup for those who cannot commit to going to the office every day.
Generate Income from It
Only buy the office space if it can generate income for your business. Whether it’s subleasing parts of it or being near your target market, the property should be beneficial for your company. What good will it do to buy a property that cannot generate additional income for your business? You need to have a forecast. It’s not enough that it has good potentials in making sure your business is in the right location. It has to have income-generating abilities now and in the future.
Why does it matter? What if you have a good business now and don’t think that leasing the space out in the future is needed? It matters because, as you saw in the past year, things can get out of hands for businesses when there are health, economic, and political crises. Businesses suffer. Although you try to make as many contingencies as possible, you cannot discount the fact that even big and established companies had to close in the past year.
Buying a commercial property is a good idea only if you make a plan to rent it out if things do not work out for your business. Before making an offer for office space, look at it from a tenant’s perspective. Would you rent out this space?
Developments around the Area
Look at the developments around the property. Is there gentrification happening? Will the market change in the coming years? Is it the same market that you are targeting right now? If things are going to change in the next five years or so, your business has to be ready for it. Massive changes in the community are always impactful to businesses. If you do not try to see into the future, you’re going to lose the investments you make now.
Are you planning to buy an office space or commercial property? Don’t dive into this without considering all the factors that can affect your business and finances. Make sure it’s going to be worth your investment because security — in business and finances — is built by the best decision-makers.
Meta title: Watch Out for These Things Before Buying Office Space
meta desc: Buying an office space is so different from buying a house. Forget about all the considerations that went into buying your dream home. When it comes to a commercial space, here are the things that you should look out for.