The decisions regarding office space may be some of the most complex and unfamiliar decisions that you will have to make when starting an office. Do you build, buy or rent space?
Here are some tips when buying office space;
- Define and understand your needs. Make sure the decision to buy a building fits in with your business plan.
- Allow flexibility for growth or contraction.
- Evaluate the opportunity as an investment as well as how the property fits your needs. Do a lease vs. buy analysis as a part of your financial analysis.
- Know the market and your alternatives.
- Do space planning and costing prior to removing conditions to purchase.
- Evaluate your opportunity costs. Is the investment return comparable to the additional return you could get from investing the money in your business?
- Compare value with a build to suit option. How much more would it cost to build your own building if this option is feasible.
- Have an exit strategy. Know how you will divest yourself should the need arise.
- Obtain the services of a professional representative to avoid costly mistakes. They do this for a living and can help make sure your decisions are sound.
- Location, Location, Location is an important key for appreciation and resale.
(taken from www.officespacefinder.co.za)
By Brad Porter