Buying A Commercial Office Space
Do you
plan to buy commercial office space for your business? Investing in an office
space is a huge decision for any business owner, so it's essential to be as
informed as possible before making such a purchase. In this guide, we'll cover
some key factors you should consider when buying an office space.
Is
Buying Office Space A Good investment?
Are you
wondering if buying an office space is a good investment for your business? The
answer may depend on several factors, such as the size of your business, the
industry, and the company's stage of growth. If you're a small business owner,
you can just rent office space. However, if you have a rapidly growing
business, you may need to purchase office space to accommodate your needs.
The
point is, there's no right or wrong answer when it comes to whether or not you
should buy an office space. It really depends on your specific situation.
Benefits
Of Buying An Office Space
There are many benefits involved in owning your own office space. Here are just a few of the advantages:
- Control over the place. When buying office space, you'll have complete control over the property. This means you can make any changes or renovations you want without permission from a landlord.
- Ample space. By buying office space, you'll have room to grow. If you need to expand your business in the future, you won't have to worry about finding a new place to lease.
- Greater revenue potential. If you have extra space in your office, you can always rent it out to other businesses. This can be a great way to generate additional income for your business.
But before signing any contract, there are a few things you should know about how to buy office space.
Checklist
Before Buying An Office Space
To
ensure you're ready to buy an office space, here's a checklist of the things
you need to do:
Step 1:
Motives for buying
First
and foremost, you must ask yourself why you want to buy an office space. Is it
because you're expanding your business and need more room? Or are you looking
for long-term investment? Once you know your motives for buying, it will be
easier to make a decision.
Step 2:
Where is the office space located?
The
location of your office space is important for two reasons: first, you want to
make sure it's in a good area, convenient for your employees and customers.
Second, the location will affect the property’s price. Transportation, safety,
and the surrounding businesses should all be considered when choosing a
location.
Step 3:
Consider the neighbourhood
In
addition to the location, you can also consider the neighbourhood. Is it a
residential area or a business district? What are the local demographics? These
critical factors can affect your decision to buy an office space.
Step 4:
Is it for your own business or investment?
Investment
is a totally different game. You're not just buying an office space; you're
also buying a property that you'll eventually sell for a profit. This means you
need to think about things like resale value and potential rental income.
But
expansion is a different story. You're buying an office space to house
your own business, to help it grow and expand. This means you need to consider
the location, the space you need, and if the office space can accommodate
future growth.
Step 5:
Market trends
It's
important to stay up to date with market trends before making any decisions.
Many factors can affect the value of office space, such as the current state of
the economy, interest rates, and even things like natural disasters.
If you
don't have prior knowledge about the market, it's a good idea to consult with a
real estate professional. They can give you insights on the location, price,
and type of office space that will fit your needs.
Step 6:
Check the local market conditions
Another
factor to consider is the local market conditions. This includes things like
the unemployment rate, the average income of residents, and the median home
price. All of these factors can affect your decision to buy office space.
Step 7:
Zoning
Before
buying an office building, you can check the area’s zoning. This will determine
what type of businesses are allowed to operate in the area and if there are any
restrictions on the property.
Step 8:
The interest rates
Interest
rates are another important factor to consider when buying office space. You
need to understand the current interest rates and how they affect your monthly
payments.
Step 9: How
much office space do you need?
Now, you
need to sit down and calculate how much office space you actually need. This
will vary depending on the size of your business and the type of industry
you're in. Make sure to factor in things like future growth and expansion when
making your decision.
The
traditional rule of thumb is that you should have about 170 square feet of
office space for every person working in the office. Executive offices may
require more space, ranging from 200-400 square feet, and for open-plan
offices, you'll need about 100-150 square feet per person.
Step 10:
Your emotions
Make
your choice based on logic, not emotion. It's easy to get caught up in the
excitement of buying a new property, but you need to ensure it's the right
decision for your business.
Now that
you know what to consider before buying office space, you can start your
search. Keep these factors in mind, and you will definitely find the perfect
office space for your business.
Buying
Vs. Renting an Office Space
Here are
a few things to help you decide whether to buy or rent an office space.
- Renting gives you the flexibility to move if your business needs to change. On the other hand, buying gives you the stability of a long-term investment.
- Buying an office space can be a good investment because you can build equity over time, and it can appreciate value.
When you
are ready to buy a commercial office space in Cyprus, look at GoGordian Real
Estate listings for a commercial office to buy in Nicosia, Limassol, Larnaca,
Paphos, or Famagusta. Have a realistic budget in mind and take the time to tour
potential properties. Schedule a tour of your property of interest by
contacting the GoGordian real estate professionals today!