Do you think you may be ready to buy office space for your business? If you’re looking to acquire office space for your business, you will need determine your needs before signing on the dotted line. If you are considering buying office space to house your business, you will need to have a clear vision of your future office space needs and also to consider these factors to decide if now is a good time buy office space.
Lease or Buy Office Space?
When deciding to lease or buy office space, two important factors to consider are cost and interest rates. Leasing a 2,000-square-foot, $100,000 office for your small business would cost you in the ballpark of $1,000 a month with few additional costs, Microsoft Business reports. Contrarily, buying that same property would require a $10,000-plus down payment along with closing costs and building inspection fees. Any financial commitment with this degree of risk requires careful consideration if you don’t want to end up dealing with collection agencies like Oliver Adjustment Company. For a more detailed comparison on whether to lease or buy office space visit our our Lease vs. Buy Pros and Cons.
But buyers can’t ignore the low interest rates the U.S. has been experiencing over the past five years. And when you buy, you know exactly what your monthly payment will be every month; conversely, if your lease contains a clause providing for it, your rent could increase as the Consumer Price Index rises or other specified increase.
In addition, the U.S. Financial Accounting Standards Board and London’s International Accounting Standards Board recently enacted new regulations that frame leases as liabilities, as opposed to assets, on balance sheets. But push-back from analysts and business owners forced regulators to scale back their initiatives, at least temporarily, according to the Wall Street Journal. The final version of the new regulations is expected to be re-visited in March, when the two bodies hold another joint meeting. But if you can use your savings or liquidate future structured settlement payments to come up with a down payment, you should at least talk to a good commercial real estate agent to determine what kind of deal you can get.
The Small Business Administration offers two popular loan programs, the SBA 7a Loan and SBA 504 Loan. A number of nonprofit organizations, like Accion USA and Association for Enterprise Opportunity, offer direct loans to entrepreneurs who could not otherwise get bank financing.
If you would like to find out more about finding office space for sale and whether or not you to buy office space for your business, please contact us for a free, no obligation consultation with one of our OfficeFinder professionals. We will put you in contact with one of our top local specialist to help with your needs.
By: James Osgood