Just like hiring more staff is a big decision, so is knowing when to buy a building for your business. Forecasting your company’s profit and cash flow are each important steps to take that will help you make a wise decision about such a major capital investment. 

In this article, we’ll look at reasons to buy a building, knowing the right time to purchase, and who you can rely on for financial advice.

Why Buy Commercial Property

If you’re on the fence about buying property for your business, consider these factors:

  • You may have outgrown your current space
  • You need higher quality facilities
  • You’re looking for a better location

Any and all of these can be compelling reasons to buy. Another major motivator: You’ll have an asset that will likely grow in value. Plus, you can lease out part of the space for a steady source of cash flow. If you reinvest that money into the property in the form of upgrades, expect that value to rise even higher and at a faster pace.

A business coach can help you think through the current use of your space and improving capacity without increasing overhead expenses. The decision to buy a building should be strategic based on the cash flow, growth projections and future vision plan to ensure it is in the best interest of the owner and the business.

Now that you understand the “why,” you have to answer the question “when?” If your business cannot continue to grow without its own space, it’s probably time to start looking so you can choose your best option.

When to Buy a Building

Let’s say you’re inclined to buy, and the supporting reasons are in place. As you find candidates, here are some things to consider before committing to purchase:

  • Is the building structurally sound?
  • Is the location ideal? Is it conveniently accessible to you, your employees, and your clients? Whether yours is a B2B or B2C company, consider the location’s ability to attract new customers.
  • Will your cash flows support the purchase, even if your business hits a downturn?
  • Are the price, interest rates, and market conditions favorable?

Look to a team of trusted advisors to guide you before making a purchase. These can include commercial brokers, accountants, and your business coach. Commercial brokers will provide the location and the data of the property, your accountant will help you understand the tax implications and/or benefits, and your business coach will help you review the overall strategy in connection with the long-term vision of the owner and business. 

Benefits of Owning Commercial Property

When you own a piece of commercial property, you enjoy benefits such as:

  • Fixed interest rates, so that your payments stay consistent
  • Tax advantages that allow you to deduct the mortgage interest and property taxes
  • A space you can shape to fit your needs
  • Potential streams of income from tenants 
  • Increasing your business credit and asset equity

Need Guidance on Buying a Building for Your Company?

Keep in mind that when you buy a building, you are doing more than purchasing a space that will house your staff and operations. You’re making a long-term investment as an investor in real estate. ActionCOACH Tampa Bay has the expertise to guide you along the journey toward making this and other significant business decisions. Contact us and let’s discuss your goals.