It’s time to stop renting commercial space and build your ideal facility

Get the building your business needs and save money by starting from scratch.

When businesses are young and finances are tight, renting can be the only option. As time progresses, owners and managers must make difficult choices whether to continue to rent property or invest in ownership. The decision is not as difficult as people make it out to be. By building with steel, you can affordably and quickly get the building your operations require, with many benefits that will help your business prosper over the long term. 

Unlike temporary options like renting, sub-lease or co-sharing, pre-engineered steel buildings incorporate cost-effective designs that support long-term utility in one location. Your business may never have to relocate again. Many companies opt to invest in these structures because they can be customized for both your operational needs (regardless of industry and purposes) and budget. Steel buildings are popular for industrial operations because they can be built quickly – up in running in as much as 35% faster compared to traditional bricks and mortar – to minimize interruption of your business, operate efficiently to lower operational and maintenance costs and are easy to expand as your business needs change.

Contributing to the success of your long-term business plan

When is it time to consider owning your own permanent building? You generally want to start considering buying a commercial property or building a facility if you are going to occupy it for more than five years.

For most businesses, if you will be relocating in less time than that, and definitely if less than three years, it is advisable to lease a building until you’re ready to commit to one location. Other reasons to go ahead and build is if you already own a commercial property, have surplus budget or great credit. While the total rent paid on a one- or two-year location may be less than the cost of investing in your own building, the money is now in someone else’s pocket – rather than your own business. If you plan on being in business for more than three years, your building cost becomes a capital investment that holds its value (or appreciates) making it a valuable asset to recoup when you sell your business or as part of another exist strategy.

Other disadvantages of renting:

• Available rental structures can be in disrepair and may offer lower aesthetic appeal
• You’ll have to tolerate a physical design that is not ideally suited to your needs
• Some rental locations have reputational issues due to former tenant use

Renting is quick, convenient and provides flexibility while you are building your business. It is a reasonable way to get your feet underneath you, establish your brand and reputation, and develop your operational procedures. Once established, however, you may want to consider how your business and investment fits into your long-term real estate strategy. There are a number of key investment advantages to consider in that plan:

• Building with pre-engineered steel structures is less expensive than a traditional construction project
• Steel buildings maximize energy efficiency
• Fast construction times minimize interruption to your business
• Prefabricated buildings use less materials, and therefore minimize waste 
• Pre-engineered building are fully recyclable
  
  

The benefits to construction, operation and design

Construction using pre-engineering costs less than traditional methods, such as brick and mortar or mass timber, making it ideal when you have limited finances or are stretching budgets by expanding into additional locations. Even these affordable building costs are offset by lower operating costs over the long run. Running weighted average cost of capital, payback period or net present value calculations will clearly demonstrate the cost benefit of an intelligent investment into the future of your business. Recognize the signs it's time to increase your business space.

Building with steel is faster than other forms of construction, so you can get your operation up and running up to 35% faster. You’ll experience less of a delay and fewer interruptions while transferring to your new facility. Some of these infrastructure costs (and any interest you pay) can provide tax benefits, compared to rent that’s lost forever, so check with your accountant on how the strategy may apply to you.

The cost savings extend throughout the lifetime of your business. Insulated pre-engineered panels and large windows allow much more natural light to help cut energy and utility bills significantly. Buildings made with cold-formed steel require much less maintenance and reduce costs as the years go on. When you rent or lease, your common area maintenance (CAM) is much higher. Shorter-term rental leases demand a higher monthly rate (both in terms of utilities and operationally), whereas ownership is widely acknowledged as being a smarter and less expensive option. 

One thing owners discover when they build is that they end up with a building that’s ideal to their needs, custom-built to anticipate all their requirements and completely up to all municipal safety and accessibility codes. Read our article on the benefits of increased working space. Older buildings may require expensive retroactive upgrades, such as ramps, elevators, wider doorways, washrooms, etc. With a pre-engineered building, you won’t need to worry about accessibility. You also can design the required accessibility elements, built-in common areas, changing rooms, kitchens, public and private employee washroom to make your facility as comfortable as possible for staff and guests. Why compromise and have to make do with what was there when you signed an expensive lease? Why invest your money to fix up someone else’s oversights?

What about the property?

Yes, to construct your ideal building, you will need to find and purchase the land upon which it will reside. Buying a property for your long-term venture actually increases the value of any future selling price. We’ve witnessed tremendous growth in real estate prices over the last few years. Land is a finite resource – we’re not getting any more of it. Your land purchase may therefore help to accelerate the growth in value of your business. And if you’re on a modest budget, you don’t necessarily need to be located within the heart of a metropolitan area. There’s a good reason why most industrial facilities are founded on the outskirts of cities: land prices are less expensive, provide easier access to major transportation and offer more space for your operation to flourish. Build the exact building you need with plenty of space to grow in the future. By building with pre-engineering and their load-bearing end walls and steel frame, you are always able to easily and quickly expand your building, regardless the size of its current footprint. 

When the time is ideal to build, we should be your first call 

No matter the state of the economy, it is always better to own than to rent. Summit Steel Buildings works with your leadership and ownership teams to find the most appropriate building solution for your building needs. As a manufacturer, we can work to help lock in your prices well in advance so you can save more. Get the commercial space you’ve always wanted and benefit from lower costs to operate it. No one should rent forever.
Contact us today at 877-417-8335 for a free quote.