When it comes to your business’ office space, there are two main options to choose from. The first option is to buy out an office space and own the property, the second is to lease a designated office space. Each has pros and cons and are best suited for different kinds of businesses. Want to find out which kind of space is best for your business? Keep reading!
What is leasing?
Leasing a property generally means that you pay rent each month for an office space that comes fully furnished and ready to use. Most office buildings that offer leasing have multiple tenets from different industries.
Pros to leasing
- Shorter time spent in one place, so you are not tied down
- Many prime locations
- Minimal financial burden
- Flexible office space sizes
- Come fully furnished
Cons to leasing
- Working with a landlord
- Cannot always renovate
- You don’t own the property
- Not an investment
Who should lease
Smaller companies who are just starting out should begin by leasing office spaces. It minimizes your financial commitment and can allow you to start off in prime locations, save on office furniture, and provide flexibility. As your business grows, you may want to consider the purchasing option.
What is buying?
Buying an office space is where you purchase either a building or a unit and that becomes your permanent office. You may pay monthly payments, but those payments turn into ownership as soon as the building is paid off.
Pros to buying
- You own the space and can do whatever you want
- You are not paying rent each month
- Tax deductions
- Fixed cost
- An investment
Cons to buying
- Property value uncertainty
- Costs more money upfront
- Not flexible
Who should buy
If you want control over the property, buying is the option for you. Since it is your property, you have the final say in style, design, and operation. If you plan on staying in a single location for a while, this should also be the option you select. At the end of your time in the space, so long as property value has not decreased, you can make back the money you put into creating the space.
For help with buying or leasing an office space, contact Allen Mayer Commercial Real Estate and let us find you the perfect space for your business whether you want to rent or buy.