THINGS YOU SHOULD CONSIDER BEFORE ACQUIRING OFFICE SPACE FOR YOUR BUSINESS
Successful commercial investment requires a good grasp of the real estate market, current trends, understanding of potential risks, and financial ability. Commercial investing is different from real estate investing and comes with several potential risks. Make sure you consider the following tips next time you need to acquire a commercial space.
LOCATION & ACCESSIBILITY
Accessibility- when used in the acquisition of property- refers to the quality of being able to be reached or to reach (others). Commercial property seekers ought to ensure that the office space you are acquiring sits in a vantage spot, in the full glare of the public or potential clients. It should offer varying modes of transport for client convenience, and, ideally, have good infrastructure and be close to major commercial hubs, amenities and essentials. You, and your clients, will find that economically satisfying.
Real estate investments require full-proof planning. Your budget in hand determines which acquisition process- whether leasing or buying- is more cost-effective and ideal. Weigh up how much you intend to spend and factor in extra-costs for furnishing, recruitment, resourcing, and other financially-oriented dealings.
CONSIDER THE PROS & CONS OF LEASING OR BUYING
Your decision on whether to rent or outrightly buy an office space determines your major financial investment. And there are pros and cons to each.
Pros of leasing your office space
If you are not entirely financially stable, and not sure you intend to work from the same place permanently, leasing is the best option for you.
When you lease, all you need is to deposit a small investment into the rental charge for a fixed duration and foot the nominal brokerage fee. This allows you to exploit reserves in other important investments or business expansion.
When leasing, you acquire a high-end space for a minimal amount of money. And oh, might we add that the landlord is also responsible for maintenance and repairs of the office space.
Pros of buying your office space
Acquiring your own commercial space permanently affords you sovereignty over all decisions, including renovation and expansion. You don't have to worry about a landlord looking over your shoulders or taking months to respond when you seek permission. And who guaranteed you a positive response anyway? Moreover, buying a house is comparatively cheaper in the long term and much more secure investment.
THE PHYSICAL CONDITION OF THE SPACE
You need to always be guided by purpose. How suitable is the space for the purpose it is intended? How and for what purpose was this space used before? If the office space passes your work suitability test, proceed to run an environmental check to determine the condition of the property and the amount of repair required. Is it safe from disaster and risks, does it have enough parking space and has it got enough space for expansion? These questions will guide your estimation of the property value and choice.
READ YOUR AGREEMENT CAREFULLY
Carefully and thoroughly read through contract terms and be certain that they satisfy your interests and conveniences. Alert owner to any grey areas in order to receive assurances and ascertain exact demands. Don't be shy to insist on terms spelt out in a language void of any form of ambiguity.
Always attempt a negotiation, even when you find your perfect office space. Often, property seekers accept the first offer in fear of losing that ideal commercial space. But you should always negotiate your terms before you buy, because, if successful, you may be saving a lot for your business in the long run.
CREDIT: Nii Kotey / Goel Ganga
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