As with any decision in life there are two sides to every situation. If you are currently considering whether you should lease your office space or buy it you may wish to include the following in your deliberations:
- Would you be a better landlord than your current lessor? When you’re your own landlord, you don’t have to worry about whether your rent payment is inflated because it is a profit center for the landlord. You have the ability to control some of your expenses.
- Are you changing office locations frequently because of rental rate or common area maintenance increases?Moving takes time and money, which could both be better invested in buying a space. Not to mention it would be nice to know what your debt service will look like in the future as opposed to experiencing market fluctuations every once in a while.
- Would you rather your monthly rent payment be an investment?No one likes spending a lot of money every month on rent. Buying won’t rid you of those monthly payments, but instead of giving that money to someone else, you are investing in an asset.
However, buying versus leasing doesn’t mean it’s the right decision for you.
- Is relocation/significant expansion/downsizing slightly possible in the next few years?Buying is a long-term commitment. Unless you’re purchasing office property solely as an investment, your company’s growth or downsizing expectations will play a role in your decision.
- Is location important?Some businesses may need to be in a specific part of town. Unfortunately this may eliminate the advantage of locating in up-and-coming areas where the market may be more conducive to your business.
- Is your current lease structured as a full service lease? If you’re currently leasing, the building manager most likely has a cleaning and maintenance crew that empties the trash, replaces light bulbs, maintains the bathroom, etc. Oftentimes potential buyers take janitorial and maintenance services, utilities and services such as Internet and phone service for granted and forget to factor it in their buying considerations. You must be willing to take on or hire out these responsibilities if and when you buy.
- Would your equity be better placed in your business?If you only have capital for one investment, your business may be a better choice than buying a building. Similarly, your time may be better spent working on your business rather than maintaining a building.
Leasing an office or set of offices from Executive Suites at Lakewood Ranch gives you flexibility in terms and payments and you will be located in the ever growing and trendy Lakewood Ranch area. We also provide all of the external services you need which means you won’t be taking out the trash each night.
Check our website, ESLR Offices, check our specials and check out our offices and prices. Your decision to lease versus buying may become a very easy one for you to make.