Do you know what is that one thing every entrepreneur loves? It is the day they get to step into their own dream office.
A survey in Australia for commercial spaces showed that the office spaces in the last decade have increased by 22.6% to reach over 25 million square meters of space. So, if you are considering setting up a new office for your business, keep on reading this article!
The Age-Old Question – Buying VS Leasing
When you are planning to set up your new office, there are a lot of things that pop in your head – the office furniture, the layout, the amenities, etc.
However, the most important question will always be whether to go for lease or buy a commercial space. This has left almost every entrepreneur baffled, and especially when they are visiting their realtor. So, let’s address this dilemma first.
- Leasing – the modern-day approach
This is one of the most followed modern-day techniques. It has proved good for entrepreneurs who are envisioning their first office and want to invest less capital. This also goes well with people, who do not see growing their entire organization in the current city, or the current workplace!
What’s the best part about a lease? You do not have to invest a lot, and you can rent high-end spaces at a lesser cost! The maintenance cost is usually covered in the lease agreement and is covered by the landlord, depending on the agreement.
However, there are certain downsides, like the limited scope of customizations, restrictions on accommodation, and there is no actual value of the real estate. Thus, many entrepreneurs prefer buying their office space.
- Buying the office space – an age-old approach
This is as old school as it gets. Since leases do not fulfill the satisfaction of the upward valuation of real-estate, in the long run, conservative businesses buy the office space. There are many upsides to this plan of action.
The most important one is that it is your own office space, and you can do anything with it – renovations, unlimited customization, sub-letting to other office spaces, etc. This is profitable if you want to keep this space for a longer time and grow the business.
However, some of the visible downsides in the short term are that there is a higher capital commitment, and you will have to take care of all maintenance. Still, freedom of ownership is the reason why people go for this option.
With both options being crystal clear, let’s look at the crucial things, that you need to keep in mind while buying a new office:
1.The location of your office matters
The location is the most important virtue of the office. It should be situated in a growing and upcoming neighborhood. An interesting survey in Australia showed that over 70% of the office space is housed in the capital cities of Australia. Apart from the connectivity, make sure the neighborhood is well developed, and there are social structures along with amenities to back the office space!
2.Ensure the budget to afford the space
Before you decide to make a move on your new office space, you need to take care of the finances. Usually, there is a down payment of 10-30% of the value. So, preparing a budget works, and you also need to do an analysis to check whether your revenue can back up the investment you are about to make. Once you are clear, you can contact your realtor and sign the papers.
3.The commercial space must be flexible
This place will be your office for a considerable amount of time. So, you have to check how flexible the office is, in terms of the addition of newer cabins, better rooms, more furniture, and equipment, etc. The perfect office should grow as the company grows. This is a tried and tested principle.
4.The amenities should be perfect
While making a move to buy the commercial space, you will have to contact an interior designer to help you out with the layout. This is also the time, when you make provisions for office furniture and equipment like servers, computers, and printers, etc. If you are looking for modern furniture, which adds to the space and functionality of your new office, you can explore some options at BFX Furniture!
So now that you know what are the things you need to keep in mind while buying a new office, what’s the wait worth for? Seal the deal!