Should I Lease or Buy Office Space?
As a new owner of your own business, there’s something else that you should consider owning: office space. Before you make the final decision, however, you must determine if it is best for your needs to own or lease this space. The decision can be complicated, but, as a small business, there are some specific factors to take into consideration.
What is your financial situation?—Leasing is typically less expensive upfront than buying, as the leaser pays regular monthly payments, rather than the initial down payment incurred by a buyer. Additionally, an individual purchasing their own office space must remember that there are other payments, including potential fees for a loan and building inspections.
Where do you see your company’s growth in one year? 5 years? 10 years?—If you feel that your company is already at its desired or necessary size and that it won’t be expanding within the next decade or so, it may be safe to buy the appropriate-sized office space right now. If, however, you anticipate that the company will grow, leasing might be the better option. You’d hate to buy office space, only to have to upsize in a few years.
What is the land appreciation like in your area?—You never know where the future will take you, your business, or your location. For this reason, it’s always smart to think ahead. Be sure, if you’re planning on buying property, to find a location that will give you a reasonable profit, in the event you will be selling it in the future.
For more specific answers and guided advice, contact a trusted real estate agency, like EC Griffith in Charlotte. These agencies are experienced and educated in the broad world of real estate, as well as of the specific real estate facts for your location.
And, of course, best of luck to you and your new business!