When starting a business, one of the first decisions to make is whether to buy an office space or rent one. Of course, with anything, there are pros and cons. That being said, future entrepreneurs should carefully weigh both options before moving forward. Consider costs and how much time you’d have for renovations if you decide to buy, and spend time browsing locations that work for your company and employees.
Pros & Cons of Buying an Office Space
- Tax Deductions – Buying an office space means you will run a business that receives tax deductions on the mortgage interest.
- Property Appreciation – Your property’s value can increase over time, so when it’s time to sell, you can make a major profit.
- Extra Income – If you no longer need the office space, you can rent it out to another company.
- Various Costs – There are a lot of different costs related to owning an office space. There are maintenance and appraisal costs, and possible property improvement expenses.
- Lack of Flexibility – If your business continues to expand, your current office space may become inadequate for your needs.
Pros & Cons of Leasing an Office Space
- Maintenance and Time – When buying an office space, all maintenance is your responsibility. When leasing an office space, however, you have time to focus on your business because upkeep and improvements are taken care of by the property owner.
- Various Expenses – There is a chance that the annual rent will increase, which means higher and unplanned costs for you. Leasing an office, however, is not nearly as expensive as owning an office space.
- No Equity – Although you’re essentially funding another company or individuals by leasing, there is a significant amount of effort that goes into owning a commercial space. When you decide to own, you’ll be diving into the property management business, which can be tricky if you don’t have experience.
If you are interested in leasing an office space, Dunham Ridge offers beautiful and affordable offices for your business. Get in touch with us for more information.