If you need space for your business, whether retail or some other type of commercial space, you have some choices to make. You have to decide whether you will lease, buy, or build a property. If you intend on staying in a space short-term, leasing might be the best choice. But, what if you’re in it for the long haul? Here are some of the things you’ll want to think about if you’re torn between deciding to build or buy commercial property.
Consider the Commercial Construction Costs
The first thing you’ll want to consider is your budget. Buying an existing building might seem less costly, but you might have to spend a significant amount on build-out before it meets your needs. If this is excessive, you may be better off building something. At the same time, take a look at rising construction costs and the additional costs of things like architects and engineers.
How Soon Do You Need the Commercial Property?
Your timeline will also play a significant role in your build vs. buy decision. If you need commercial space yesterday, building something won’t be an option. When you purchase something, most of the work is complete, and you might just need to make a few minor adjustments. But a commercial construction project could take anywhere from six months to several years, depending on the scale.
What Are Your Customization Goals?
When you purchase an existing commercial property, you’re tied to the conditions that come with it. But, when you choose new construction, you have much more freedom when it comes to space, access, building restrictions, and even zoning. And, if you plan on future growth, you buy enough land to accommodate this type of physical expansion.
Can You Get What You Want/Need With Existing Properties?
It probably won’t make sense for you to buy vacant land and jump through all the hoops necessary for construction if you can achieve your goals with existing properties in your area. For example, existing warehouse or office space isn’t difficult to find in most major cities. But, if you have something more unique in mind, like a factory, you might have to start from scratch.
Are There Financial Incentives for Choosing One Option Over Another?
You may be able to take advantage of financial incentives for choosing one option over another, depending on your particular area. For example, you may be able to get tax breaks if you build in an area with high unemployment and bring jobs to the area. But you can also get low-interest loans and grants for restoring some historic buildings. You can also save on construction through tax breaks if you implement green building practices.
Caldwell Commercial Can Help You Build or Buy the Right Commercial Property
If you’re ready to invest in commercial real estate in the Charleston, SC, area, you need a team of partners you can trust. Whether you decide to build or buy, Caldwell Commercial Real Estate can guide you to the right piece of property using our in-depth knowledge of the area and more than 80 years of combined experience in the industry. When you work with us, you can rest assured that we deliver results that achieve your goals and surpass your service expectations. Contact us today.