Day 67: Should I have a spec building? This has been a debate for the last thirty years. I view spec buildings as an expensive marketing effort. But as in most things in life you get what you pay for. On average a spec building will sit empty for five years. During the recession it was probably 7-10. BUT you also say an increase in companies actually visiting the community to view the building. Most of the time the building may not have been a good fit, but the community was and the prospect decided it was worth considering building a new building in the community. If your organization can find a way to pay and build a building it is a huge asset. When you sell the building you then have a good start for the closing fund I discussed a few days ago.
The building should be no smaller than 30,000 sq.ft. 50,000 would be ideal. Make sure it has at least one drive in door and an obvious office entrance. Depending on the climate it should have a floor. If no floor than make sure it is well ventilated. I once went through a sped building with a dirt floor and no ventilation during cooler weather and we had to have umbrella to walk through the building because of all the condensation falling off of the roof! The building should also have a paved street and utilities nearby. We had a client who had a spec building that did not more for fifteen years. The building sat in the middle of a field with no road to it. Not even a gravel driveway! The funding can come from a bank if they are willing on being aggressive and community minded. If you are in a rural area and have no available buildings, I would strongly encourage you to find a way to build a spec building. Next: Will a virtual building work?Next Previous