Here are 5 Reasons to Lease Office Space
May 03, 16
Buying your office property makes financial sense if the cost of financing, construction, and operating expenses is within $1-2 per sq ft. of the market rate for leasing comparable space in the area. However, there are numerous reasons to consider leasing your office space instead of buying.
Here are 5 top reasons to rent office space
1. Time -- Time is money and operating a busy office is naturally time-consuming. If you own the office space where your business is located you will also be faced with the time-consuming aspects of real estate ownership. You will need to make sure the property's landscape is maintained, parking lot cleared, HVAC system regularly serviced and the plumbing/electrical remains operational. All of those things take time away from the operation of your business. By leasing office space, you can outsource the time-consuming tasks of being a landlord
2. Reduced Renovations -- An existing office that is available for rent or lease might already boast the layout that you need to get your business off and running quickly. You won't be faced with remodeling or other costly renovations prior to moving into the building.
3. Move-in Time -- Renting real estate is relatively faster than buying and once the lease or rental agreement is signed you can start to move into your office area and get your business off to a speedy start.
4. Flexibility -- If your business starts to grow quickly you can always seek out another office space to lease, but if you purchase the real estate you will be faced with costly construction additions to increase the office building's size to meet the needs of your growing business. If you anticipate outgrowing your space over the next five or 10 years, leasing may be a more conservative option.
5. Cash Flow -- If you opt to lease, instead of buy, you will eliminate the large cash expenditure of a down payment required to buy. You can invest the down payment into other areas of the business. Whatever investment you choose may have a higher return than if you had opted to buy real estate.
If you are seeking office space to rent or buy, our real estate professionals at LandPark Commercial are here to help you. Please contact us to learn about local listings.