Connect with us


Is It More Affordable to Build or Buy a Commercial Building?




As a business or investor, you may be looking to purchase new commercial property. There is an alternative, however.

There are many factors when considering building your structure from the ground up. Which is the smarter and more affordable option? 

  • Survey The Property

Regardless of what you’re looking to buy, you’ll want to have it professionally surveyed. This allows you to see if there are any repairs, maintenance, or renovations that need to be made.

Having quality groundwork, for instance, is something only a surveyor can assess. They are able to provide options such as ground improvement stone columns to offer stability, improve load-bearing capacity, and reduce any further settlement.

  • Consider Downpayments and Renovations

Buildings that are already constructed will require some type of downpayment if you’re not intending to pay cash in full. This money will need to be saved ahead of time and provided by the investor upon requesting a loan.

There’s also a high probability that the location you decide upon won’t meet the exact specifications for your business’s needs. You’ll have to consider any renovations or building additions needed to suit your investment goals.

New builds allow you to create exactly what you want from the very beginning. The stipulation is that you’ll need to hire contractors and architecture firms, plus buy the land you intend to build on.

  • Look Into Tax Breaks

Investing in commercial real estate could offer some substantial tax breaks you may not be aware of. This applies more specifically if you’re bringing new jobs into the city. They think of it as an investment in your investment.

Properties that are considered historic buildings can be eligible for grants or low-interest loans to restore the building while preserving the integrity of the architecture.

Purchasing a building that already exists can also lead to tax deductions on the interest you’re paying. However, your building also depreciates the minute you purchase it.

While building new construction doesn’t lead to as many tax benefits, there are still certainly a few you could benefit from, such as the 179D Commercial Buildings Energy-Efficient Tax Deduction.

  • Think About How Soon You Need Your Property

One crucial element that a lot of investors don’t take into consideration is time. With new construction, it can take anywhere from two to six months, if not more, to complete the build. Plus, you’ll have to make sure it meets all laws and regulations according to the state and city guidelines.

A benefit of buying a property that’s already been built means you’ll only have to consider the timeframe for repairs, renovations, and decorating. You could be saving money simply because the longer your building is out of commission, the longer you won’t be making any income.

  • Potential To Recoup Costs Through Sub-Leasing

Buying or building a larger commercial property gives you the opportunity for sub-leasing. If you’re buying a building outright, it may not accommodate another business leasing out an office space.

If you decide to build out a new property, you can make it larger than you anticipate your needs being and sub-lease. It’s a larger investment from the beginning, but if you work out the numbers, you could easily recoup costs and make an even more significant stream of revenue.

Eventually, if your business needs to expand, you can utilize the extra space previously leased by other tenants for yourself.


There is no clear-cut answer as to which is the more affordable option, to buy or to build, when it comes to commercial real estate. There are several factors to take into consideration, with the most important being your budget.

Work with a professional accountant to look into your personal investments, outside investors, and any potential help you could get from applying for a loan. Understand clearly what your end goal is so they can help decipher whether new construction or buying pre-built is a better option for you.

The idea of Bigtime Daily landed this engineer cum journalist from a multi-national company to the digital avenue. Matthew brought life to this idea and rendered all that was necessary to create an interactive and attractive platform for the readers. Apart from managing the platform, he also contributes his expertise in business niche.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


The Ultimate Guide to the Essential Social Skills in Business




Effective communication and strong relationships are essential for success in the workplace. One factor that can greatly influence these qualities is emotional intelligence, often abbreviated as EQ. EQ refers to the ability to identify, understand, and manage one’s own emotions, as well as the emotions of others. Research has shown that individuals with high levels of EQ are better equipped to handle stress, communicate effectively, and work collaboratively with others (Chamorro-Premuzic & Sanger, 2016).

Research has consistently shown that emotional intelligence (EQ) is an important predictor of job performance and success in the workplace. EQ is comprised of a set of skills that allow individuals to recognize, understand, and regulate their own emotions, as well as the emotions of others. In addition, individuals with high EQ are better able to communicate effectively, build relationships, and navigate complex social situations. As a result, they are often viewed as effective leaders and collaborators, and are more likely to achieve their personal and professional goals.

In fact, a number of studies have demonstrated the significant impact that EQ has on job performance and success. For example, one study of 85 upper-level managers found that those with higher EQ scores were rated as more effective leaders by their subordinates (Law, Wong, & Song, 2004). Another study of 151 employees found that those with higher EQ were more likely to be promoted within their organization over a five-year period (Carmeli, Brueller, & Dutton, 2009). These findings highlight the importance of EQ in the workplace and suggest that developing these skills can lead to significant benefits for both individuals and organizations.

According to a study conducted by TalentSmart, a leading provider of EQ assessments, EQ is responsible for 58% of success in all job types (Bradberry & Greaves, 2009). In contrast, IQ only accounts for about 4% of success in the workplace. This suggests that EQ is a crucial skill set for individuals in any professional field. Fortunately, EQ is a skill that can be developed and honed over time with practice and awareness.

There are several key components of EQ that are particularly important for success in the workplace. These include: 

Self-Regulation: This refers to your capacity to recognize and control your emotions. Sometimes treating them when they arise may be necessary. Understanding how to manage your anger is essential. However, it can also cover how to control the feelings you’ll experience.

Self-Awareness: This implies recognizing and understanding your own feelings. Do noisy places make you nervous? Do other people talking over you make you angry? Knowing these truths about yourself shows that you are working on your self-awareness. Being conscious of yourself is necessary for this phase, which can be more complex than it sounds.

Socialization: This category focuses on your capacity to manage social interactions and direct relationships. It doesn’t entail dominating others but knowing how to work with others to achieve your goals. This could entail presenting your ideas to coworkers, leading a team, or resolving a personal disagreement.

Motivation: Strong motivators include external forces like money, status, or suffering. Internal motivation, however, plays a significant role in Goleman’s concept. By doing so, you demonstrate your ability to control your cause and initiate or continue initiatives of your own volition rather than in response to external demands.

Empathy: It’s equally critical to be sensitive to others’ feelings. This may entail learning to identify different emotional states in individuals — for example, can you tell the difference between someone at ease and someone anxious? — but it also requires comprehension of how other people may react to their current situation. Empathy is one of the essential traits in business and business leadership.

A thought leader in this space, Michael Ventura has built a career advising organizations on the importance of emotional intelligence in the workplace. In his book, Applied Empathy, Ventura highlights the value of empathy in business and provides strategies for developing and applying this skill set. With two decades of experience as a leader, facilitator, and educator, Ventura’s work has made impact in with prestigious institutions such as Princeton University and the United Nations as well as corporate clients such as Google and Nike.

Through his work, Ventura advises leaders to focus on the development of EQ in order to help individuals improve their communication, collaboration, and leadership skills, ultimately leading to greater success in the workplace. Experts like Ventura continue to support the growing body of research on the value of EQ in business, and the evidence that organizations who invest in the EQ of their teams help to create a more empathetic and successful professional environment.

And it’s worth noting that EQ isn’t just important for individual success in the workplace, but also for overall organizational success. A study by the Center for Creative Leadership found that EQ was a better predictor of success than IQ or technical skills in the workplace, and that teams with higher levels of EQ tend to be more effective and productive (Boyatzis, Goleman, & Rhee, 1999). By cultivating a culture of empathy and emotional intelligence, organizations can improve their overall performance and create a more positive work environment for their employees.

In conclusion, emotional intelligence is a crucial component of success in the workplace, and individuals and organizations alike should prioritize the development of these skills. The ones that do not only develop a leading edge in their category, but also become a meaningful place to work for their teams. And in today’s rapidly changing talent landscape, the retention of highly capable, emotionally intelligent leaders is one of the greatest keys to unlocking success.


Boyatzis, R. E., Goleman, D., & Rhee, K. S. (1999). Clustering competence in emotional intelligence: Insights from the emotional competence inventory (ECI). In R. Bar-On & J. D. A. Parker (Eds.), Handbook of emotional intelligence (pp. 343-362). Jossey-Bass.

Bradberry, T., & Greaves, J. (2009). Emotional intelligence 2.0. TalentSmart.

Chamorro-Premuzic, T., & Sanger, M. N. (2016). Does employee happiness matter? Journal of Organizational Effectiveness: People and Performance, 3(2), 168-191.

Continue Reading