Making a decision on should you lease or buy your office space is a challenging decision to make. It is challenging to decide whether you should either buy an office space or you would rather benefit more from renting or leasing an office space. . Well, this is one difficult decision that most business owners have to make. To which one will best suit your condition, you need to weigh the pros and cons of each option before making the decision.
The Pros and Cons of Buying an Office Space
Below are some of the advantages and benefits that you may get by buying an office space through Austin Tenant Advisors:
By locking in your commercial mortgage, you get to pay fixed costs. As a result, you will have a more concrete idea of what your annual costs will be.
You can enjoy significant tax deductions(property taxes, mortgage interest).
You can create an additional source of income by renting out a portion of your unused office space.
It can be an excellent investment property.
While the prospects of owning a commercial space be attractive enough for some business owners, it also comes with its own disadvantages. Here are some of them:
It lacks flexibility. You may be forced to sell your property to address the growing needs of your business in the future.
It entails huge upfront costs. Apart from making a significant down payment, you need to pay for the appraisal, loan fees, building inspection, property improvement costs and other such expenses. For sure it will tie up a considerable chunk of your capital.
Leasing or Renting an Office Space – Exploring the Pros and Cons
By deciding to rent or to lease an office space, you get to enjoy the following benefits:
You can get a prominent business address for less.
Since your capital is not tied up in real estate, you can use your resources to take advantage of the unique opportunities in the market.
You can concentrate on growing your business. Real estate ownership comes with its own challenges. You don’t have to deal with any of these if you decide to rent or lease an office space instead.
Never the less, renting or leasing also comes with some disadvantages. By choosing this option, you will have no equity in the property and will be funding someone else’s retirement nest egg. You may also be subject to annual rate increases and higher rates once your lease expires. So, which is the better option? Well, this really depends on your personal circumstances and financial capability.
If you do not have the financial capability to make huge upfront payments or are not yet quite sure how much space your business will really need in the near future, then you should consider the rent or lease option since this can give you the flexibility you need to grow your business. Considering the fact that there are a lot of excellent office spaces that can give you everything you need for a reasonable price, this can be one of the best business decisions you will ever make. Therefore I believe this article will act as a perfect guide to help you make an informed decision.