Small businesses are often on the cutting edge of their market, and it can be years before they will be ready to use all the space they have after expansion. Those unfilled areas can be a costly proposition that will eat the profits right off the bottom line. Filling unused spaces can be a good way to stay ahead of the costs without losing what they will need for their future. It can take a while to get the right fit, but it will be worth it in the end.
Leasing out space to other companies is often a good solution for a small business in this predicament. They may need several years before their next expansion, and the company they are leasing to could have the same issue. The business leasing space might need additional storage, or they could be ready to expand their manufacturing capabilities in a new setting. The knowledge their space rental will be temporary is all part of the plan for both companies.
Expansion is costly, but doing in on an established site is generally less of an expanse. A small business that has already purchased and built their space has fewer costs when it is time for their next big move. The company that has been leasing space from them should be ready for their own move, and it can be a well-orchestrated operation when the time comes. One business will move out while the owners get ready to inhabit their own property.
There can be issues that arise when a leased area tenant is not quite ready to move. Ensuring this does not occur is important when drawing up the leasing contracts, so hiring a professional real estate agent and an attorney to oversee it could be a good investment for all parties concerned. Having the space available for future needs is important, but it is also a good idea to keep it from being a costly investment.
