Posted on: 15 June 2017
If you're starting a new business, or need to move your company from your current facility, you want to consider the advantages of having a new building constructed for you. While renting another facility may have some advantages, there are many reasons to think about working with a builder to have a new building constructed from the ground up; note a few of those advantages here, so you're sure to make the right choice for your company.
Consistency of costs
Getting a mortgage for a new building means consistent costs for however long you occupy that building. Rent costs, however, can fluctuate greatly from one lease term to another. This can result in having to relocate your business again and again in order to afford rising rental costs. Having a consistent mortgage payment can also mean being able to more precisely prepare budgets and projections for your company, without having to leave room for fluctuating rental costs.
A new building is an investment that can pay off for your company in the long run, as you may be able to eventually sell it when you're ready to relocate or retire. The building then becomes an asset, whereas you have no equity in a building you rent.
Before you sell a building, you may be able to deduct some of its depreciation on your business taxes. An accountant can help you determine if this depreciation and other costs of ownership and occupancy would mean a higher deduction on your taxes than rent payments.
When you have a building constructed from the ground up, you can have it customised to your needs; some of these custom features may be difficult to retrofit in another building, or you may not be able to find a landlord who would accommodate these choices. This customisation might include oversized dock doors for delivery trucks, a cool room for computer servers or inventory you need to keep at exact temperatures, wiring for specialised electronics and extensive computer equipment as well as added ventilation to keep the equipment cool when in use, and the like. You can even have your company colours incorporated in the carpeting, paint, cubicle countertops, and other features.
Customising can also mean eco-friendly options; added ventilation can mean less running of your air conditioning and heating, and reflective glass can keep out hot summer sun. Your building might even include a water recycling system, to recycle water from the sinks back to the toilets, so your company uses less fresh water for the restrooms.Share