December 30, 2022
Finding the prime location for an office is important, but how you pay for it can matter even more.
Even in the era of remote and hybrid work models, office space is still a valuable resource. From startups to major financial firms, office space provides a place for employees to collaborate, brainstorm, and establish working bonds. When searching for office space, companies inevitably ask themselves: should we rent or buy? In this article, we will discuss the differences between renting and buying when it comes to office space.
Renting vs. Buying: How Do They Differ?
On the surface, renting vs. buying office space comes down to the agreement type. When you rent office space, you will be partnering with a landlord to pay a fixed monthly fee and maintain the space under the terms of a lease. When you buy office space, you will purchase it in its entirety or with monthly payments, allowing you to keep it for as long as you want. Though these are clear differences, they are only the start.
The Price Difference
Rental prices are skyrocketing, and companies that rent office space are facing challenges with the rising prices. With how rates are increasing year-over-year, companies might end up having to move simply because of the length of their agreement. Long-term, buying a property can save companies a lot of money.
The Investment Difference
Since rentals are only given to a company for the duration of a lease, there is no real investment in rental space. Buying, however, can allow companies to invest in actual assets. This means that the building can be sold at a later date in the event that the company no longer needs it. It is even possible to make more as prices continue to climb.
The Commitment Difference
Companies that are less sure about the future of their business often benefit from renting over buying. Buying an office is a much larger commitment and will take more consideration. It is a practice that is best suited to businesses that plan to stay and grow in at a location.
The Control Difference
Leases by landlords are notoriously limited regarding what you can do with a property. When you rent, you cannot truly treat the space like it is your own. However, buying an office space will give you complete control over the building. You can invest in renovations and any other changes you want to make.
Renting office space is the right choice for some businesses, but buying office space can offer more substantial long-term benefits. If you are looking to invest in an office for your business, we can help you to find the perfect match at a great price. A purchased office building today can be a valuable resource and asset tomorrow, especially for growing companies!