10 Keys to 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.