Small businesses are popping up everywhere these days. If you have started one or simply have an idea to start one, the decision to buy or rent a suitable space to operate out of is a top priority for you. There are a few questions you need to ask yourself when considering buying or renting a property for your small business.
What are your growth plans?
First, consider expansion. Do you plan on eventually growing your company? Do you plan on staying in one location or eventually moving to a larger location as your small business expands? If you plan on staying in one location for an extended period of time, you should consider buying the property. Buying a property does not have leases involved and the stability of mortgage instead of a lease may be what you are looking for to make your small business successful. On the other hand, renting allows for more flexibility and the freedom to expand or move locations as your small business grows and changes.
What’s your budget?
You also need to consider your budget. What are your monthly and annual profits? Can your small business sustain higher recurring costs when renting or would it be more economic to pay more upfront and less monthly? When renting a commercial property, there are less upfront costs (security deposits, inspection costs, etc.), but the monthly fees (property taxes, annual utility fees, etc.) tend to be higher. When buying a commercial property in Wilmington, NC, the upfront costs tend to be higher, however the recurring monthly and annual fees tend to be much lower.
Will the property appreciate?
The last thing you should consider is investment. Will your property increase in value over time? When you buy commercial property, you can take advantage of investment potential. If the value of your property goes up over time, you can sell the property for more than what you bought it for. However, if you are not planning on staying in one location long enough for the value to increase significantly, you should consider renting. Renting does not allow for this investment potential and you will not be able to sell the property yourself after you are done with the space, but does give you more freedom to move locations.
If your still stuck deciding between whether to rent or buy, give us a call and let one of our experienced agents help at (910) 791-0400