When deciding whether building a new structure, buying an existing building, or leasing a property is the best course of action, some of the most important factors to consider will depend upon current market conditions and the long-term impact of each decision. Some economies make renting (or leasing) a better idea while sometimes economic conditions may create a healthy environment for building and outright purchasing of property.
2. Time-frame for move or relocation
3. Cost of moving and storage
4. Flexibility in location, price, and building features
5. Readiness of funding availability
This complex web of need and availability requires an investigation into the overall cost of each decision. Sometimes a high initial cost will eventually pay off with lower overall operating costs; however, the immediacy and need to move may trump eventual savings during a move. Sometimes a move is necessary so as to take advantage of plans for expansion and favorable market conditions that require a significant increase in company output.
Availability of Space
Regarding the availability of existing buildings, a variety of potential costs should be considered when looking at a particular property. For example, buildings may exist that would suit a company’s needs perfectly, but if market conditions increased rental costs too much, this decision could cost too much money.
Time-frame for Relocation
Ramping up production often necessitates an increase in spending in the short-term, and a larger space may be required for such activities. However, if a company is able to estimate the need for expansion and higher output well in advance, building a new space will almost always provide the best investment.
Cost of Move and Storing Items
To facilitate a move, it may be necessary for a company to store items in a local storage facility for a short time until a new space is ready. Additionally, it’s not uncommon for a business to move into a space that isn’t entirely finished and require additional storage space until portions of the new building have had renovations completed.
Overall Flexibility of Move
A company might have very specific needs regarding the design of a building and its facilities, and this often requires construction of a new facility or heavy refurbishment of an existing structure. If a company is very flexible regarding facilities and features of a new building, finding an existing structure for lease or purchase usually makes more sense.
Funding Opportunities for New Construction
After a company experiences positive growth in the industry and is ready to expand, funding new projects is usually possible through cash on hand or through traditional funding (like a bank loan). Funding options for a new business, however, are occasionally less straightforward and may require creative financing solutions. Renting a property in the interim before full funding is available is often required for expansion projects by young companies.
If you’re in need of local storage solutions for your company move, contact Find Local Storage today to see how we can help you meet all of your storage needs.