Business
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.
Summary
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.
Business
Michella Filipowitz: Shaping a Future of Inclusion for Children with Disabilities
Michella Filipowitz, a prominent model, business leader, and philanthropist, has dedicated her life to advocating for children with disabilities. Her personal story, shaped by her experiences as the mother of a child with autism, has driven her passion to build a more inclusive world where differences are not just accepted but celebrated.
Michella’s journey took a transformative turn when she became a single mother at the age of 23. Shortly after, her son, Benjamin, was diagnosed with autism at the age of three. “It was an unexpected and overwhelming moment,” Michella recalls. “No one in my family had dealt with anything like this before, but with my mother’s guidance, I was able to see Benjamin’s diagnosis not as a burden, but as a new way of understanding the world.”
Benjamin’s condition is categorized as a hidden disability. Though it’s not always obvious to others, his challenges—such as delayed speech—affect his everyday experiences. “It was difficult to watch him struggle while other kids seemed to develop so naturally,” Michella shares. “It made me realize how often children with disabilities are left out or misunderstood.”
This realization sparked a new mission for Michella: to create a world where children like Benjamin are given the same opportunities as their peers. “I knew I had to be part of the solution,” she says. “Our differences are what make us unique, and we should be embracing that, not hiding from it.”
Michella is also keenly aware of how quickly people judge others based on outward appearances. “We live in a time where everything is so public and visible, but that doesn’t mean we know the whole story,” she explains. “It’s important to have empathy and not make assumptions.”
Her advocacy work has centered on changing how schools and communities treat children with disabilities. Too often, children like Benjamin are segregated in special schools, which can further isolate them. Michella believes this approach is flawed. “Children with disabilities need to learn alongside their peers,” she says. “Only then can they grow up understanding that differences are normal, not something to be avoided.”
Her vision is clear: an education system where children of all abilities are taught together, learning to respect one another from an early age. “If we can instill the values of acceptance and understanding in kids while they’re young, we’ll build a much more inclusive society,” she says.
Michella’s commitment to helping families of children with disabilities goes beyond advocacy. She co-founded the DR Family Foundation with her fiancé to provide critical support to families who are struggling with the high costs of therapies, treatments, and education. “As a single mother, I know firsthand how overwhelming it can be,” she explains. “That’s why I wanted to help other families get the resources they need.”
The DR Family Foundation has already made a significant difference, helping families cover school expenses and other essential costs. The foundation’s next big initiative is creating a home for children from difficult backgrounds, offering them a safe and nurturing space where they can thrive. “It’s not just about providing shelter,” Michella says. “It’s about building a community where these children feel loved and supported.”
Reflecting on her journey with Benjamin, Michella speaks with gratitude. “He’s shown me that what others might see as a challenge is actually his strength,” she says. “His resilience and uniqueness are what make him so special, and I want to make sure other children have the opportunity to shine in their own way.”
Through her work, Michella envisions a world where children with disabilities are fully included in every aspect of life. She hopes that by advocating for inclusion and providing support through the DR Family Foundation, she can help create a brighter future for these children. “I want parents to know that they’re not alone,” she says. “With the right support, we can give our children the chance to live fulfilling, happy lives.”
Stay connected with Michella Filipowitz and her mission to create a more inclusive society for children with disabilities by following her on Instagram @princessmichella.
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