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What are the Benefits of Constructing Your Own Commercial Property?

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Evening Tao

Running a business in 2023 is not a simple affair. Between rising costs for consumers and rising overheads for companies, finances are scarce across the board – and many enterprises in many industries facing insolvency as a result. While it is a matter of enduring the present financial landscape for many, there are other active ways in which businesses can improve their standing. Businesses attempting to expand might be looking at property as part of said expansion, but further benefits could be accessed via the building of their own property from scratch. How?


Of course, there is an obvious surface-level reason for which construction of your own commercial premises would be a shrewd business move. The addition of workable square-footage to your business premises enables immediate and controllable business expansion, whether through the moving of departments to a new building with more space or better amenities, or simply creating warehouse space to expand stock holdings and logistical span. There are geographical benefits too, where buying and building on land in a new region enables swift expansion into new markets altogether.


The property market, both for domestic house-hunters and commercial entrepreneurs, is not currently at its kindest. Rising interest rates make borrowing difficult, and the high present value of property makes purchasing new premises an unavoidably costly endeavour.

Building property, though, yields similar end results with reduced overall cost. Investment in the construction of your own commercial premises allows you to benefit from the movements of the property at a lower cost, and to own valuable assets going forward. This is to say nothing of the money saved from the rental of commercial or industrial spaces from other developers.


The construction of additional commercial property can also have potential tax benefits, with numerous opportunities and outcomes. For one, the owning of commercial property renders you as eligible for Business Asset Disposal Relief, formerly named Entrepreneur’s Relief, which reduces the Capital Gains Tax rate paid on assets. There are also opportunities to claim capital allowance, recover VAT from sub-letting and even receive a VAT discount on residential conversions.

Running Costs

Speaking of financial benefits, there are savings to be made in constructing and maintaining ownership of your own commercial premises in-house. The running costs for such properties can be reduced by keeping all construction and maintenance work internal, saving your business from higher rates quoted by outsourced management companies or even letting agents. The design and construction process allows you to make shrewd decisions that reduce long-term overheads, such as investment in solar panels or efficient internal ventilation design.


Speaking of which, building your own property enables you to make a great deal of personalised choices, and avail yourself of ideal designs that positively impact your business – and which might be otherwise difficult to find on the market. This is a unique privilege that enables you to purpose-design a property for your purposes, potentially improving productivity and staff morale as a result.

By Liliana Alvarez

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