How to Choose Between Building and Leasing Office Space
At some point in the evolution of all growing businesses, owners must decide whether to lease larger space or build their own office building.
Building a new office creates a chance to improve working conditions, expand space, upgrade your company’s image, and customize the structure to your specific needs. However, owning your own building also heaps additional responsibilities and obligations on your plate.
Here are a just few of the questions business owners should answer before deciding whether to build metal office buildings or lease office space:
Planning and constructing your own building takes time— usually far longer than building owners expect.
Zoning, permitting, designing, arranging financing, excavation, construction, decorating, and move-in are all time-intensive. Water, sewer, and utility connections alone take far longer to approve and implement than you may imagine.
Can you wait a year— or more— to have your new offices up and running? Or do you need more office space immediately? Does the owner of your current offices have additional space available?
Do you have enough time to oversee the myriad details involved in building your own office? Will hours spent in planning and implementing a new office detract too much attention from managing your business?
Is an appropriate SITE available?
Remember the old real estate adage: location, location, location.
If your business is consumer-based— where clients come to your office— an attractive, visible, strategic setting is essential.
Be advised, however, the greater the location, the higher the price you will pay for the tract. Of course, that also means your property has a potential higher resale value.
In business-to-business sales and services, most sales are handled by phone or at the clients’ offices. While locality may be less critical to these enterprises, it still needs to be a consideration. A poor location may make your office building harder to sell or lease later.
When purchasing land for your office building, consider the size of the tract. Figure a plot at least five times the footprint of your building plan. Allow plenty of area for parking setbacks, green spaces, and later expansion.
Be sure that your business meets all city zoning criteria for the location. If it does not, ask about the possibility of having the tract re-zoned.
Do you have a DESIGN in mind?
Call on the professionals for office building design. Work with architects and contractors well versed in the type of building you are planning and who are experts in creating prefab office buildings for sale. They will be sure all metal office buildings meet fire codes, parking restrictions, local building codes, local ordinances, Disability Act parameters, and lender requirements and inspections.
Consult with qualified local commercial brokers for contractor recommendations of firms familiar with the type of construction you are planning. Insist on references from proposed contractors.
You will also need an engineer to cover soil testing, site excavation plan, drainage, concrete slabs, and any access issues.
Design a space with plenty of natural lighting (which improves efficiency). Allow sufficient work space and ample room to move around freely.
Include interactive spaces like break rooms in your plans, where employees can exchange ideas freely.
Go green when planning your new metal office building.
- Green buildings improve your company’s image.
- Investing in green energy-saving office building cuts heating and cooling costs.
- Premium insulation systems, cool-coated reflective metal roofing, and insulating windows and doors drastically cut operating costs.
- Choosing Energy Star® office equipment further reduces energy expenditures.
Do you have FINANCING arranged?
Currently, lending rates are incredibly low, so it is a great time to build.
Typically, you will need two loans: an interim loan for construction and a long-term loan after the building’s completion. Interim loans (also known as construction loans) protect you from dishonest contractors and subcontractors.
Long-term commercial building financing is very complex. If you are new to commercial building projects, hire a broker to lead you through the intricacies of financing your project.
Have you created a BUDGET?
Know what it will cost you to obtain land and find prefab office buildings for sale. Do not forget to include moving, furnishings, decorating, insurance, maintenance, landscaping, utilities, taxes, equipment rental, and any other operational costs.
When decorating, resist the temptation to buy the cheapest furniture available. Comfortable, long-lasting furnishings— especially high-end desk chairs— prove a better value in the long run. Studies show employees’ productivity increases in a comfortable environment.
Wireless technology also improves output, allowing employees to meet and discuss ideas easily anywhere in the building.
Compare the costs of owning to the potential expenses for leasing office space in your market. Project the growth potential of your business over the next decade.
If adequate funding is available, consider including rental space in your office building. Leasing tenant space helps offset your construction and operating costs. If your business grows faster than anticipated, you have the option of expanding into the rental space at the end of your tenant’s lease.
Over the long term, which offers the best option for your business— building or leasing? Weigh the pros and cons carefully before selecting the best building option for you.
Building a Steel Office Building
Prefab office buildings for sale offer several advantages to companies seeking to construct their own low-rise office buildings.
GREEN: Steel is the most recycled substance on Earth. Steel is the only recycled material that maintains all its strength, regardless of the number of times it is recycled. Filling the extra-deep wall cavities of steel framing with premium insulation drastically cuts heating and cooling costs in steel office buildings.
STRONG: Steel is so much stronger than other building materials, it takes far fewer pieces to construct metal office buildings. Less framing members means a lighter frame, so less concrete is required for the foundation. It also means pre-engineered steel office building go up faster than other building methods.
DAMAGE-RESISTANT: Steel’s strength allows it to stand up better to gale-force winds, lightning, fire, mold, termites, vermin, and earthquakes. Most insurance companies grant sizable discounts to commercial-grade steel office building owners.
FLEXIBLE: For the ultimate in interior layout flexibility, choose unobstructed clear span metal framing to get the most out of your prefab office space. For the most economical steel building, choose multi-span metal framing. Finish out your steel building in colorful steel panels, glass, brick, block, stone, or stucco to create the perfect image for your business.
Discuss constructing your own steel office building with a qualified RHINO metal building specialist today. Call the RHINO number at 940.383.9566 to learn more about prefab office buildings for sale or for a free quote.