Everyone knows it is more expensive to live in the city compared to the suburbs, and this year, the price of city life has seemingly skyrocketed. From excessive overhead expenses, rising corporate rent, and loss of tenancy across the board, it is no surprise that so many business owners are choosing to relocate outside of the city district to a more cost-effective region. Yet despite the many benefits that come along with moving your business to the suburban areas, you can expect to encounter a few pitfalls.
Before choosing your new business space in the suburbs, continue below to review some well-noted pros and cons of making the move, plus where to get the best commercial real estate space planning and permitting advice in Central Indiana.
Should You Locate Your Business in the City or Suburbs?
Like anything decision in life, deciding between moving your business or staying in the city will require some critical thinking. One of the most basic methods of gearing up a successful brainstorm is comparing pros and cons. Many argue that moving a business to the suburbs will deliver cost-savings and ultimately, a higher quality of living. While others warn that making such a move can subject a business to reduced access to nearby amenities and walk-in customers, as well as a smaller pool of aptitude.
Pros:
You Will Save More Money and Have a Better Life
Relocating your business to the suburbs or suburban areas will certainly set you up for a long list of cost savings. Not only can you attain cheaper office rent or commercial lease, but you will also enjoy lower taxation rates and pay less in payroll.
As for your actual business space, you will get more bang for your buck in the suburbs. Office spaces in suburban areas tend to have more square footage and cubic square footage. They also tend to have better features and amenities, such as parking lots, landscaping, security, and more.
When it comes to paying taxes, you will be relieved of your responsibility to cover income tax, corporate tax, sales tax, and more. You will likely pay less in payroll since you won’t have to compete with the average cost of living in the city. Those who live and work in the suburbs have lower living costs, which means a lower salary will still be a desirable one because still goes a long way.
Saving all this money on overhead expenses, taxes, and facility maintenance will have a significant impact on your annual dividends, and more importantly, your overall quality of life. Suburban life is typically safer and experiences less criminal activity.
Cons:
The Needs of Large Scale Organizations May Not Be Met
If your business is a large corporation or company, the city might be the most compatible location in terms of meeting the needs of your business operations and objectives. For instance, city areas are typically epicenters for all sorts of travelers, cultures, services, entertainment, and more. Some businesses rely on this draw of people.
Additionally, walkability is greatly reduced in the suburbs. Being in the city gives you access to all sorts of services and stores within walking distance. For businesses that rely on walk-by or walk-in service, a city location that is densely packed will be most beneficial. Along with walkability, city areas have ample access to public transportation.
If a business chooses to move from the city to the suburbs, they could risk losing a wide scope of talent and entertainment. It is much easier to find talented employees and contractors in the city than it is in the suburban areas. Furthermore, it can be more difficult to locate and procure the resources you need for your business operations.
Would you like professional assistance with commercial real estate procurement in Indiana? Contact BAF Corporation at 317-253-0531 for commercial space planning and permitting in Indianapolis, Indiana. Our commercial general contractors can help you find and renovate the best space for your business.
Related Posts:
Factors to Consider Before Signing a Commercial Office Lease
What is a Build-to-Suit Commercial Lease?
Why is Commercial Real Estate Market Space Listed as Class A, B or C?
