According to the Journal of International Studies, there were over 5.6 million commercial buildings in the US as of 2012. By 2019, the commercial office space had increased by 45%.
The question of whether to buy or lease office space is one that troubles many business owners. Most real estate professionals will not have direct advice on the matter because it generally depends on what situation your business is in.
If you are a new business or a small one, leasing property may be the smartest choice. This article will highlight the benefits of leasing office space
1. Lease Office Space to Get Unrequited Flexibility
Buying property is great. There is a fulfillment that comes with it. However, you may not always get property in a place that allows many people to notice your business.
This may be inconvenient as it will require you to make more investments in marketing your business. With leasing space, however, you can always find office space at a location that is strategic for your business.
If the place you rent at first is not convenient for you, you can always change and get another place that is convenient for both your wallet and your business.
2. Fewer Responsibilities
By renting property, you will save yourself the trouble of having to deal with issues like maintenance, security, and remodeling. These issues are costly and time-consuming.
With renting an office space, all you have to worry about is doing things that concern your business. The rest will be handled by the property owner.
When you buy a property that requires a lot of remodeling or maintenance, you will spend a lot of money and time trying to get everything in order. An entrepreneur who rented space will continue with their business without extra expenses and stress.
With office leasing, you do not have to spend the extra money doing repairs because the building management will send someone to repair any broken or worn out things within the building.
3. It Is Budget Friendly
When you think about buying property, you need to think about the huge amount of money you will pay for the property, the processing fees, and the fees for the company that will process the lease for you.
Buying land, especially in a city like Brisbane, is not a cheap venture. It may be costly to buy and your business may not be eligible for such a big loan from the banks.
Office Leasing Brisbane is the best alternative as it allows you to get property in a good area at a price that will not strain you too much. You are also given the chance to choose offices at a place that you want and that you think will bring you the most clients.
You are also exempted from paying a lot of taxes and, therefore, you get to save money. You are also able to negotiate the amount of money you will be paying as rent each month.
The owner of the property may also allow you to pay late if you do not have money at the moment. This is not possible when repaying a loan from the bank or when you are buying a property through a real estate agent.
4. More Cash Flow
When your money is not tied up in loan repayments and other property costs, you will get enough money to invest as capital for your business. It gives you the freedom to run your business properly and also have enough money to increase your production.
In turn, you get more sales as customers will always find the products they are looking for. You will also be able to increase customer satisfaction because you will not have to compromise on quality for lack of capital.
5. Cleaner Balance Sheets
When you buy property, you are required to pay up to 25% of the total cost of the property up front. This can be quite expensive for a business that is just starting out.
You will also have to mortgage the rest of the payment, which can financially stretch your business. It will also be easier for the business owner to save money to buy their own property someday.
6. It Saves Time
When a business is looking to get property fast to start their business, buying property may not be a great solution. There is a long procedure involved when buying real estate is concerned.
First, the buyer and the seller need to agree on the price. Then the buyer needs to verify if the seller is legally empowered to sell the property. Then you need to go and check the property for any damages that should be repaired before you buy.
This whole process could take days. This is not convenient for a business that needs to begin right away.
With renting commercial space, all one needs is to find a desirable property that is empty, negotiate with the property manager or owner, and pay the rent.
7. Negotiable Payments
If there are plenty of real estate properties on sale in the area you want your business to be, you can negotiate payments.
In fact, some landlords will have you stay in their building and pay them a small fraction of the rent each month until your business is financially stable. This is a more flexible form of renting that will benefit your business.
Leasing Office Space
To lease office space is a great choice for startup companies. It is also an easy way of expanding your company. Leasing office space business also enables you to vary your office size as you wish.
When you need quality office rental spaces, do your research. Our informative articles will help you choose an office that will reflect your unique style and address your needs. Please read our blog for more business tips.