|
|
 |
Office Space, Deciding Whether to Purchase or Lease an Office Space |
|
As a business owner, you probably make hundreds of decisions each and every day. Some are of great magnitude, such as whether or not to hire a certain person or which computer operating system is best for your business. Other decisions are not that significant, such as what brand of legal pads to purchase or whether to use a paperclip or a staple with a certain document. Regardless, your mind is going all day long, making decisions about everything in your office space.
Then there comes a time when you need to decide upon a really important issue in regards to your business-whether you should lease or purchase your office space. Perhaps you are currently working out of a home office space or you are currently renting a commercial office space. But at some point, you may be considering whether it would be a good idea for you to purchase your office space.
This can be an extremely difficult decision to make. There are many factors to take into consideration. Only you can ultimately decide if it is the best decision for you to purchase your office space, but it can help to consult a real estate broker who is experienced in professional commercial properties. He can help you to analyze the various costs involved in specific office space properties you may be considering, and this can assist you in making your decision.
Other than trying that, here are some other items you need to consider. Thinking about these factors can help in making your decision about your office space.
First of all, you need to know that purchasing an office space will cost you more initially. Purchasing an office space will require a rather large cash outlay, typically between 10% to 25% of the purchase price of the office space. Leasing an office space generally requires you to pay the first and the last month's rent-assuming you have good credit. This usually adds up to be only about 10% of what the cost would be for purchasing. As you can see, that is a rather large difference!
With leasing an office space, though, your long-term costs are not fixed. Your monthly lease amount can go up yearly (or more often, depending upon the terms of your lease or if you end up moving to a different office space). When you purchase an office space, you have a better idea of what your long-term costs will be, and this can be helpful for budgeting purposes.
You need to consider your type of business and the growth potential of it, too. If yours is the type of business that will generally always need the same size of office space (such as an established medical practice), buying an office space may make sense. But, if your business has the possibility of growing out of any particular office space, you may want to lease instead.
There are many other factors to consider when deciding whether to purchase or lease an office space. Only you can decide, so consider your options carefully. |
| Office Space |
| Back |
|
|
