Your office space is one of the most critical aspects of your business environment, impacting how your customers view your business, your employees’ functionality at work and even your budget. Because of all of these factors, the selection of office for your business is not a decision to take lightly. Before you can begin to explore different work space options in your local area, you must first decide whether to rent or buy. There are pros and cons associated with both decision, but you will discover that one option is a better decision for your current and future needs.
Room to Grow
When you purchase an office space, you typically do not have room to grow unless you purchase much larger space currently than you need. However, one option is to purchase a full office building and to lease some of the space out to tenants until your business needs it. Leasing may be a more cost-effective solution for future growth, but there are costs and inconveniences associated with continuing to move to larger spaces each year or two.
There are costs related to both related to both renting and buying, and you will need to analyze both options to determine which is most cost-effective. When you rent, you have the repeated cost of relocating as you grow or as your lease is not renewed with your landlord. In addition to moving costs and deposits, you also must endure costs to have your address updated on your website, marketing materials, letterhead and business cards. When you buy, you have costs related to deposits, appraisals, property inspections and more.
Future Business Plans
Typically, when you purchase a space, you have plans to be in it for at least five years or more. Leases can be long-term or short-term, and you can negotiate the term length before you sign. Future business plans that may impact the amount of time you spend in a space include plans to hire new employees, plans to expand to new locations in the local area and more.
As you can see, there are many factors to consider as you make the decision whether to rent or to buy. Consider thinking about current and future needs for space as well as your budget when making your decision. Then you can explore the for sale and for lease options with a real estate agent to make your final decision.