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.
- 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.
- 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.
- 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
- 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
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.