Reading time: 3 minutes

Deciding whether to buy or lease office space depends on many things, such as your individual business structure and your financial capacity as a business. The right size, location and inclusions of a potential office space depend on your business’ needs. First, you will have to work out how many employers you currently have, as well as how many you plan to have. You should also assess the business’ financial capacity, especially if you’re considering buying a space. Finally, the location is arguably the most important consideration of all. Once you have a sound understanding of your niche market and its demographics, you’ll be better placed to choose a suitable location.


What to consider when buying

When you’re looking to buy, it’s important that you weigh up the pros and cons. It’s also a good idea to speak with a contract lawyer before you buy.

Advantages

  • If you buy the property, you will expand your business’ asset portfolio;
  • Your mortgage will enjoy a fixed overhead;
  • You can get income from subleasing the premises; and
  • You can use the space freely as you please.

Disadvantages

  • You’ll need to have a large pool of cash to ensure the business isn’t impacted by this large purchase;
  • There’s no certainty that the property will not devalue;
  • You’ll have to maintain the property and incur additional costs; and
  • You’ll have to enquire as to the zoning of the land in case you plan on renovating or building.

What to consider when leasing

If you’re looking to lease a commercial space, you’ll need a commercial leasing lawyer to assist you in the negotiations. The more detailed your requirements for a rental space, the more difficult it will be to come to an agreement with the owner of the property. This is when a commercial leasing lawyer becomes invaluable.
Advantages:

  • Renting is more affordable in terms of the initial outlay;
  • Leasing allows you to change office space once you’ve outgrown your current office;
  • Maintaining the property is, for the most part, the responsibility of the landlord; and

Disadvantages:

  • You are far more restricted in terms of what you can do with the property and how it can be used;
  • The lease term might be too long, which could restrict the business if you grow out of the space;
  • Once you include utilities, the costs can be quite expensive; and

Conclusion

Once you have made the important decision either to rent or buy your office space, you’ll need someone to look over the legal side of things. Our team of commercial leasing lawyers are professional negotiators, and will get you the best possible leasing arrangement. If you’re looking to buy, have one of our contract lawyers review the documents and ensure you’re protected.

Webinars

Construction Contract Essentials

Thursday 12 August | 11:00 - 11:45am

Online
Understand how construction contracts are drafted and how to protect your construction business.
Register Now

Startup 101: Understanding Cap Tables and ESOPs

Thursday 19 August | 11:00 - 11:45am

Online
Cap tables and employee share option plans are essential for fast-growing startups. Learn more with this free webinar.
Register Now

About LegalVision: LegalVision is a tech-driven, full-service commercial law firm that uses technology to deliver a faster, better quality and more cost-effective client experience.

The majority of our clients are LVConnect members. By becoming a member, you can stay ahead of legal issues while staying on top of costs. From just $119 per week, get all your contracts sorted, trade marks registered and questions answered by experienced business lawyers.

Learn more about LVConnect

Need Legal Help? Get a Free Fixed-Fee Quote

If you would like to receive a free fixed-fee quote or get in touch with our team, fill out the form below.

  • 2020 Excellence in Technology & Innovation – Finalist – Australasian Law Awards 2020 Excellence in Technology & Innovation Finalist – Australasian Law Awards
  • 2020 Employer of Choice – Winner – Australasian Lawyer 2020 Employer of Choice Winner – Australasian Lawyer
  • 2021 Fastest Growing Law Firm - Financial Times APAC 500 2021 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review 2020 AFR Fast 100 List - Australian Financial Review
  • 2021 Law Firm of the Year - Australasian Law Awards 2021 Law Firm of the Year - Australasian Law Awards
  • Most Innovative Law Firm - 2019 Australasian Lawyer 2019 Most Innovative Firm - Australasian Lawyer