It’s one of the biggest decisions business owners have to make as their business grows: when is it time to move, versus when is it better to stay in a current space? Business owners make significant decisions for their business on a daily basis, but this particular decision can have huge financial ramifications, so it is important to consider it from all angles. Here are three factors to consider when thinking about whether to expand into a new office space or stay in your current lease, as described in the article “Ready to Expand”:
Cost of Commercial Real Estate in Kansas City
Are you paying for extra space that your business does not need? Are you wanting to hire more employees, but unable to because you simply don’t have the space? Both of these are signs it might be time to downsize or upgrade. A move will be expensive in the short term, but if your business is wasting money on useless space or your growth is crippled, you need to start thinking about other options.
Another cost to consider is the cost of the move itself. You will need to hire a moving company, possibly rent or buy new furniture and equipment, and deal with downtime when your employees will be unable to utilize office space. Do some research and try to get an estimate of how much it will cost your company in total to move. Then consider a) whether your company can afford that cost at this time and b) whether this short term expense is preferable to the long term expense of either overpaying or being unable to grow in your current space.
Logistics of Moving to a New Commercial Office Space for Rent in Overland Park, KS
The biggest thing to consider in all real estate is location, so before you make a move, compare the logistics of your current location to the logistics of a possible new place. Do you need to be by freeways or public transport? How far will you be moving away from or towards customers and clients if you move? Will your employees have access to parking and local amenities? If you have the option of moving into a location that will be better for employees and better for access to clients or customers, that might be worth the financial risk.
Infrastructure of an Office Space for Lease in Kansas City
Consider the infrastructure of your building versus a building you might move into. Typically when you move, it should be an upgrade in infrastructure. If you move to a new building, you can potentially have better internet, more cost-efficient energy systems, and other benefits that might actually offset some of the cost of moving.
Getting answers to these questions can seem overwhelming, but it is necessary to gather this information to do a real comparison of the costs and benefits of your current space versus a new one. Create a spreadsheet to track all of these details, and work with a good broker who knows your location. Make sure you work with a broker who is paid by the tenant and not the landlord so that they have your best interests in mind. Once you have done some thorough research, you can make an informed decision about whether it is better to stay in your current space or take the risk of moving to a new one.
To learn more about our available spaces and commercial property management in Overland Park, KS, give one of our commercial real estate agents in Kansas City a call at 913-685-4100!