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Benefits of Houston Commercial Construction vs. Leasing

You've been in business for a while and it's time to make some decisions about your location. Should you continue to lease space from a landlord, or is it time to consider Houston commercial construction for a brand new building? This depends on many factors, like finances, expected growth, and more. However, many businesses reach a time where constructing their own building is the best choice for business continuity and more.

Why Choose Houston Commercial Construction Instead of a Lease for My Business?

There are many reasons why you might choose to build your own facility instead of continuing to lease. In general, leasing is great for companies just starting out due to the flexibility it provides. Leases are a little easier to get out of if needed and you're not on the hook for maintenance costs. Also, if it's difficult to predict how much space you will need in future, then leasing is great until you know exactly what your requirements are. 

However, leasing has some definite pitfalls. That's why many businesses decide to construct their own building after they have been up and running for a while. Owning your company's building is often a much better choice compared to leasing for years. In general, if you have capital for a down payment and at least six months of mortgage payments, it's almost always more cost-effective to build instead of lease. There are several reasons to choose construction instead of leasing for your business.

The Drawbacks of Leasing Commercial Space

We mentioned that leasing is sometimes the right option for businesses, particularly when first starting out. However, at some point the disadvantages outweigh the benefits. Leasing comes with many downsides which make it less attractive to more mature and stable companies. If you're considering Houston commercial construction for your company, then you likely know some of the problems with commercial leasing. However, let's go over a few of the big ones that businesses commonly cite as the reason they decided to build.

No Control

When leasing, you have next to no control over your space. Everything is at the landlord's mercy, from the changes you can make to when maintenance fixes the air conditioner. Even if you have a great landlord and a well-negotiated lease, it can still be frustrating to have little control over your space.

More Expensive Payments

Another major issue with leasing is it's often more expensive than building and owning your facility. Lease payments for commercial spaces are often higher than you would pay in mortgage payments. This makes it a pretty unappealing option for many businesses because that can directly affect your bottom line and profitability.

What's more, after your lease term ends, payments typically increase. These increases can be as little as one or two percent, but up to five percent or even higher. With leasing, you have no control over price increases. Instead, your options are to sign another lease at the higher price, try to negotiate with the landlord, or pack up and find another place to rent for your business. This is another reason many companies prefer to own instead of lease buildings.

Advantages of Building Your Own Facility with Houston Commercial Construction Services

Besides the many disadvantages of leasing commercial space, there are several benefits of construction that lead many businesses to build their own facilities. These advantages often outweigh the risks for businesses who choose to construct their own buildings.

Complete Customization through Houston Commercial Construction

When you choose Houston commercial construction for your company's new facility, you have complete control over design and construction. This means you're in the driver's seat and can customize your building to perfectly suit your needs. As long as the design meets building codes, there's nothing you can't do to make your facility your own. You can get exactly what you need without making sacrifices based on the whims and requirements of a landlord. If you need your space configured a certain way to improve workflow and productivity, you can do just that.

Even after construction is complete, you have the ability to customize your building. If you ever need to reconfigure or change the aesthetic of your building, your company is able to do that as needed and without approval from a landlord (though you may need a permit from the city depending on the project). This control and ability to customize your facility is a big driver behind why many companies choose to break ground for new facilities.

Equity and Appreciation

We've mentioned that leasing typically costs more than owning your own building because there are higher payments. However, another thing to consider is that when you build your own building, you also get to reap the benefits of having equity and your property gaining value over time. When paying on a lease, these benefits go to someone else – your landlord. However, when you construct and own your own building, appreciation and equity are yours and provide a solid investment in your company's future.

Rental Income

When you build your own building, you can become the landlord and gain income by renting out portions of your building. In many cases, businesses construct buildings to meet current and future space needs. This might mean you have leftover space that you don't need immediately that can be perfect for renting out to another organization. This income can then go toward your building and business, which is an attractive option for many companies. It may also offer a fall back for income during small dips in your business.

Potential Tax Advantages

In addition, owning your own building can offer tax benefits for your company. Of course, this depends on many different factors and you'll need to talk with a tax professional. However, in most cases, you can take advantage of tax breaks for things like interest loans on your mortgage or construction loan, depreciation, and even other expenses that aren't related to your mortgage.

Making Houston Commercial Construction Simple

If you've decided to build a new facility for your company, it's important to consider how to make your construction project a success. Often, choosing the right team for your project can go a long way in simplifying construction. Also, having a team that offers comprehensive Houston construction management can help keep your project on track for things like quality, scope, deadlines, and budget.

Choosing the Right Design Build Contractor

Once you've decided that construction is the right choice for your next facility, next you'll need to find the right team for your project. Design build contractors help with every step of the way, from concept to completion. Choosing design build methods allows your construction experts to advise on more efficient and valuable options from the get go. Of course, it's necessary to find a contractor with experience to ensure your project goes smoothly. Make sure you choose a reputable company that offers expertise for the type of facility and construction method you're planning.

Houston Construction Management Services

Also, finding a team that offers in-depth project and construction management can help ensure your project stays on track. Construction managers are your boots on the ground for day-to-day construction operations. They're responsible for monitoring and managing schedules, budgets, and subcontractors to ensure the final result meets your requirements for quality, timelines, and budget.

KCS Construction: A Cut Above the RestWhen you need expert commercial construction services, choose our team at KCS Construction. We offer premium services to help you create a facility ideal for your needs. We offer services for many specialized construction projects. Whether you need a metal building expert or a Houston commercial concrete contractor, our personnel are skilled and qualified for your needs. Call us now at (281) 304-5885 to learn more and request a bid for your project.
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