Most business owners bought their building for good reasons. Ten, fifteen, even twenty-five years ago, it was exactly what the business needed: the right size, the right location, the right price.
But businesses don't stand still. Headcount grows or shrinks. Operations change. Customers and suppliers move. And property values shift, sometimes dramatically. The building that was a perfect fit then may quietly be costing you space, capital or opportunity today.
So here's a simple question worth asking once in a while: if you were shopping today, would you buy your building again?
Six questions to test your answer
- Is the location still right? Think about where your employees live, where your customers are, and how easily trucks and vendors reach you.
- Do you have enough parking and yard? Growth often shows up first as cars on the street and trailers with nowhere to go.
- Is your space laid out efficiently? A layout designed for yesterday's operation can slow down today's.
- Are you paying to maintain space you no longer need? Taxes, insurance, utilities and upkeep on unused square footage add up every year.
- Has the value of the property changed significantly? Many owners are sitting on more equity than they realize.
- Could the capital tied up in the building be better used elsewhere? Equipment, hiring, an acquisition, or simply a stronger balance sheet.
What to do with the answer
If the answer is "absolutely," that's valuable to know. You can plan around the building with confidence.
If the answer is "probably not," it doesn't mean you have to move tomorrow. It means it may be worth looking at your options. Depending on your situation, those could include selling the building, a sale-leaseback that frees up capital while you stay put, relocating to space that fits where the business is headed, or reconfiguring what you already own.
The right move depends on your business first and the real estate second. Commercial real estate should support where your business is going next.
Want a second opinion on your building?
Brian Travers brings 30+ years of executive, operating and commercial real estate experience to these conversations. No pressure, just a straightforward look at your options.
This article first appeared on Optimus | KW Commercial on LinkedIn. Follow us for new insights.