Is It Better to Lease Or Purchase Office Space?

Picking premises for your business is arguably one of the most important decisions you will ever make. Choosing wisely could give you the freedom to take your company to the next level, and perhaps even attract more employees because you have an appealing and stable base for operations. Many people wonder whether they should go about leasing office space, or if it’s better to buy.

Consider Your Budget

 It’s very important to keep in mind how much money you would ideally like to spend on your office building. Don’t forget that a property purchase often involves a hefty down payment that may not be manageable if your profits are still relatively low. On the other hand, if your budget is considerably large, you have found a space that meets all or most of your needs and the facilities are too fantastic to pass up, you may want to plan on purchasing.

Decide How Committed You Are to Upkeep

People often think one of the major advantages of leasing office space is that they do not have to take care of maintenance because a property management company handles it. If you are worried maintenance concerns will distract you from business necessities, it is probably best to lease your property. 

However, maybe you are in a situation where you already have a network of professionals to depend upon when it becomes evident a maintenance issue has come up. In that case, you may be well suited for property ownership. 

Think About the Future

Just before looking for office spaces, some business owners have experienced rapid growth of their companies, and believe they are now in a more stable phase. However, it often becomes necessary to look for new office space because current premises are much too small.

To avoid realizing an office space will not suit your needs only a few months after moving in, make sure to carefully consider how the business may evolve, and whether your facilities would be impacted by changes. 

Furthermore, one advantage of leasing office space as opposed to buying it is the possibility of working out a short-term arrangement, whereas a purchase is a much more substantial investment. In other words, if you are not certain you want to continue operating in a given city in a few years, it’s probably not a good time to buy.

Take time to analyze your current financial situation and your goals, and see if there are more benefits to leasing or purchasing office space for your business.


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