Like many business owners, you have a need for a new building to serve your enterprise. It is likely your first thought was to look for existing buildings that are for sale. Purchasing the right building could reward your business, but you may have another option. You could hire a construction company to build a new structure from scratch.
The option to purchase or construct a building is nothing something to rush into. As Chron explains, you should consider different factors that could affect which option will best benefit your business.
Reasons to construct a building
Constructing a new building gives you control over the final product. You do not have to worry about customizing an existing building for your needs. You can build the structure with your vision in mind. You can also design a building in a way that it makes money for you. Some business owners construct large buildings so they can sub-lease portions to other entrepreneurs. And if your property appreciates in value, you may reap a profit by selling your building down the line.
Reasons to buy a building
Your operation may be simple enough that you do not need more than office space, which makes going through the trouble of constructing a new building unnecessary. Your needs may also be modest if you forecast small growth for your operation. In addition, you may not have enough cash to finance a construction project or other associated costs such as buying new land, inspection costs and the expense of putting in utilities.
Looking at incentives
There are other factors that may help you decide. You might find tax incentives that could benefit you if you bought or purchased a building. Sometimes a state or local government will offer tax breaks if your new building will create a significant number of new jobs. Consider your options carefully so you know how your business will benefit.
