Should You Buy a Building For Your Business

Nov 15, 2023

When we think about office buildings, this phenomenon looks very different than it did before the pandemic. However, there are still some businesses that require a physical storefront in order to thrive and grow. In this article, we will explore the pros and cons of purchasing a building for your business, and how you can decide whether or not this investment is worth it to you.

Pros of Buying a Building

First, let’s review the pros of purchasing a building for your business.

Equity Building and Asset Diversity

One of the biggest pros to purchasing a building for your business is the opportunity to build equity. Having a physical storefront will help your businesses equity increase, as it will serve as an additional asset to you. This can help you qualify for different loans, credits, and other advantages when it comes to operation costs.

More Control Over Your Physical Business

If you provide a service or sell a specific product, having a physical storefront or building for your business allows you to have more control over your operations. Instead of solely operating online via a website or Shopify account, physical storefronts provide a diversification of shopping experiences to meet every customer’s need.

Tax Benefits

There are also tax benefits that come with purchasing a building for your business. Advantages such as write-offs and other credits can be applied to the fact that you own property.

Investment and Growth Potential

Purchasing a physical building for your business is a big investment. However, if you are a fast growing organization, having a physical business will help you expand and prepare for growth potential. From having extra space for collaboration, product storage, research and development, and testing, to physically selling products in-house, the opportunities for growth when having a physical business are endless.

Cons of Buying a Building

Now it’s time to explore some of the cons that come with buying a building for your business. While this can be a great investment in the future of your organization, it also has drawbacks for some.

High Upfront Costs

It’s no secret that purchasing a physical building for your business comes with high upfront costs. From closing costs to negotiating monthly mortgage or rental rates, getting your physical business off the ground can be very expensive. Stocking the establishment with essentials for workers and upgrades needed to run your operation can also take up more capital than you might intend.

Maintenance and Repairs

Maintenance and repairs are unavoidable and come with owning any physical storefront, no matter where you are! Just like maintaining a house, storefronts and business buildings require upkeep and maintenance. From trash removal to air conditioning repairs, it is always important to have extra funds in the bank to take care of unexpected mishaps.

Market Risk

When it comes to purchasing any piece of property, there is always market risk that comes along with making this investment. If the market dips, you run the risk of higher interest rates and less opportunity to end your lease or sell the physical property. Be sure to take into account fluctuating market conditions before purchasing a physical building for your business.


If you have decided to move forward with purchasing a physical storefront for your business, one of the first big decisions that you have to make is choosing a location. The location of your storefront can make or break your business depending on foot traffic, visibility, and convenience. Be mindful of where your target consumer is traveling from or where the majority of your inventory is made. Locations can become less popular over time, posing a risk.

We hope this article helped you better understand the pros and cons of buying a building for your business. To consult the experts and gain a professional opinion to help the growth and prosperity of your organization, get in touch with us at Bottom Line Consulting!