Buying an office space is an important step for any business. It takes long years of hard work to get there, and quite some capital. But before you do it, here are some things you need to think about-
There are a number of options available for entrepreneurs- from co-working space, executive or an office suite with virtual office. Your business dictates the locality, space, and tech needs you have.
The area your office is located in is symptomatic of your success as a business. The decision on the locality must be based on the accessibility of the locality and the commute it shall take your employees, clients and other stakeholders to get there. In cities with a good public transport system, locality doesn’t matter as much. Invest in upcoming localities. It is safer to invest in areas with rapidly developing infrastructure, and a high demand for residential and commercial real estate.
Buying an office space means the lump sum payment, added to the other costs that tag along. Costs like construction cost, moving expense, restoration costs, parking, electricity, food and beverage expenses etc must be calculated and added to get an accurate estimate of what the office shall cost you.
While seeking an office space, it is important to consider whether space shall suffice for your existing manpower and the technologies needed for your work to continue. You must also estimate if your office shall be able to accommodate the physical and technical additions of a growing business.
Before investing large sums of money in a property, ensure adequate background research of the developer. The internet can be a good source of information and reviews, or you can seek advice from people who have experience in this field. Developers with a track record of successfully delivered projects must be chosen, or if the developer is new, their credit ratings must be checked.
Your asset must be able to bring in money. You must find out if you can lease the property, which shall help in paying your EMIs and maintenance costs. Buying under construction properties can be risky, and you must exercise caution in these cases. It is wiser to invest in properties that are a source of income.
If a long-term investment is what you seek, then investing in environment-friendly or green housing projects that are beneficial because they use technologies that reduce the electricity bills and provide other health benefits.
Some buyers have very good ideas but lack enough capital. Having a partner comes in handy if you are one of these. It is imperative to have a contract that stipulates who is responsible for what and other terms.
Selling off real estate is contingent on market conditions. It is not easy to sell if the real estate market is not good. If you own property for a commercial purpose, you must have something to sell to revive a lagging business.
Your office space influences the thinking of your employees and clients and creates an impression on the market. It is very important to answer these questions before making a decision.