Small Business Office Space: To lease or not to lease?
As your company grows, you may be starting to question whether leasing or purchasing is the best option for you. Here are the main things small business owners should consider before making a final decision.
Advantages of leasing your business space
A down payment is not necessary
Leasing, as opposed to buying, does not require a large amount of money up front. This is particularly beneficial to young companies that are looking to save their funds to grow their business.
You can choose the term that is best for you
Leasing provides a more flexible option since you are able to move easily. As the market and your business grow, leasing allows you to adapt with ease.
No need to worry about repairs
All buildings need repairs at some point and leasing does not leave you responsible for them. Instead, all you have to do is call the property manager.
Advantages of purchasing your business space
Space can be an investment
Real estate is an investment and over time, it may even pay for itself. However, keep in mind that you should always consult a professional before investing any large sum of money.
You are your own boss
Being the owner of your business space allows you the freedom to personalize the space however you see fit. This type of freedom is something that is envied by many company owners.
You may even be saving money
If you plan on staying in your business space long-term, purchasing may be the most financially smart. Plus, if the location of the space is in a popular area, you will probably be able to rent it out and make a profit.
You set your own terms
Purchasing a property allows you more freedom to negotiate the terms directly with the seller. Ultimately, if you have access to more funds, you will be able to put down a larger down payment and may even get a better price.