As a small business or freelancer, you need affordable and professional workspace solutions where your business can thrive. Your search for that space starts with a big decision: Should you buy or rent commercial office space?
Making that decision means taking into account your unique situation, including your company’s size, your budget, and your business needs. However, there are also some big differences between buying and renting that you should consider. Here are a few of them.
Buying vs. renting commercial office space requires different upfront costs. When you buy space for your business, you will pay more to obtain the property, including any or all of the following:
- Down payment
- Appraisal fees
- Closing costs
- Property improvement expenses
Choosing to rent property for your business will also require some upfront expenditures, such as a security deposit and broker fees, but these expenses will be much less than those involved with buying your property.
These lower upfront costs can free up capital for you to use in improving and running your business and make moving into your own office space much more affordable.
Once you purchase commercial office space, you become responsible for any ongoing expenses related to its upkeep and maintenance. That broken toilet? That leaking roof? That parking lot that needs paving? It all comes out of your pocket.
That means you become responsible for everything from utilities to
- Routine maintenance
- And more
Before choosing to buy workspace for your business, you will need to ensure that your budget can handle all of these ongoing expenses.
When you rent instead of purchase your office space, many of these long-term costs become the responsibility of your landlord. That can make renting a more affordable option, particularly if your business runs on a tight budget.
Equity and Taxes
Purchasing your office space does have some financial benefits that you need to consider. Chief among them is the ability to build equity as you pay down your mortgage. You can use this equity in the future to pay for other needs, including property improvements or business growth.
Additionally, you may be able to receive tax benefits from owning your own office space. For example, you may be able to use property depreciation and mortgage interest to lower your tax burden every year.
You will need to consider whether these financial benefits provide enough of an incentive to offset lower monthly costs and upfront expenses associated with renting your office space. For businesses that lack the sizable down payment or ongoing cash necessary to purchase and maintain their own commercial office space, renting may still be the more affordable, and preferable, choice.
Strong real estate markets in desirable locations can drive up the costs of professional office space and make purchasing workspace in a prime location too expensive.
Thanks to the lower upfront costs of renting your office space, you may be able to lease space in your preferred location for less than it would cost to buy.
If building your company’s reputation is important, if you require a professional address for your business, or if you need to be in a certain spot for easier access to customers, you may want to consider leasing rather than buying.
When you need on-site security, a front desk, or even office furniture, where do you turn? If you choose to buy your commercial office space, you will be responsible for providing all of these amenities for yourself.
When you choose to rent office space, however, you may be able to enjoy amenities and maintenance as part of your lease package.
For example, here at Via Executive Suites, you enjoy access to a full range of amenities, from complimentary Starbucks coffee to 24/7 security and friendly bilingual front office staff while you focus on growing your business in a flexible office space that meets your needs.
How quickly do you see your business growing? What do you think your office needs will be in the next 5-10 years? If you purchase office space, will that space fit your needs as your business changes and grows?
For businesses that anticipate changes over the next few years, renting office space can be a smart choice because it gives you greater flexibility than purchasing your workspace.
Rather than undergoing the hassle of selling your property, or the expense of renovating it, as your business grows, you can simply change your office space at the end of your lease.
That means that you can focus on growing your business into the company you want it to be, rather than trying to fit it into a property that no longer works for you.
Here at VIA Executive Suites, we have flexible lease options and a variety of office spaces across 4 locations. That means you can grow in the confidence that you will always have access to the space you need.
Here are Via Executive Suites, we make better work achievable with 4 business centers throughout the Valley. Our flexible office spaces include a huge array of amenities and every convenience in state-of-the-art facilities.
If you choose to rent rather than purchase your office space, reach out to us. We would be happy to show you how we can make professional workspace possible for your satellite office, small business, freelance or remote work needs!