Office Space Decision Time: Buy vs. Lease
Should you buy or lease your next office space?
In today’s economy, making sure you’re examining all your options when coming to a decision about almost anything is more complicated than ever. This especially applies if you’re looking for office space. Granted, there are plenty of office spaces available, both office space for sale and for lease. So, what should you decide?
- You’re not wedded to a site forever. If you need to move to a larger space, you can easily work through a lease and move on.
- No property taxes to worry about. The leaseholder is responsible for any property taxes on the office space.
- Repairs. The leaseholder is responsible for any repairs to be made. They may even be willing to pay for minor improvements, but you will likely have to chip in for major upgrades.
- Fixed payments. Your per month/quarter/year payment won’t increase unless you refinance. Your lease payments will change based on the agreement in your contract.
- Equity. If you purchase, you’re actually putting money into an investment, not just buying permission to be there. It gives your business a major asset that you can use to borrow against when you need equity.
- Renovations. You don’t have to have permission from a leaseholder to make improvements. This is especially important if your business needs to change things in such a way that will make it hard for the owner to rent to another tenant.
These are just a few considerations to keep in mind when looking at office space. Of course, location will have an impact and the fiscal abilities of your company are also factors to consider as well. Working with a great real estate company will enable you to determine if your best option is to lease or if you’d be better served looking for office space for sale. If you’re in the market for office space, contact us to take a look at your options.
The space shuttle doesn't take off without a whole team of people giving input. So don't feel like you need to do this by yourself.