The objective of any for-profit business is to make money as it continually grows. Whether it is an existing business or brand new, it is essential that there is enough room to carry on with its daily operations. Most have achieved their space requirements by either leasing commercial space or by purchasing the building outright. The choice to lease or buy is determined by what direction you want to take your company, the type of business you have, and the amount of money you have for each option.
There are many advantages to leasing building space for your company. Sometimes, it just comes down to availability. If you look around, you may notice that there are more commercial buildings for lease than there are for sale. It is easier to lease a building than it is to buy it since no credit reports have to be obtained. The leasing process is shorter than a sales transaction; this is perfect for you if you are on a specific timetable and have to relocate quickly. Another advantage of leasing commercial space is that you don’t have to make to a large outlay of cash. With leasing, you can put a deposit down to secure the space, but with a purchase, you have to give a much larger amount of money as part of the sales process.
When you lease your business space, you might not have to worry about repairing or maintaining the property. These expenditures can eat into your profits and should be avoided if at all possible. While there are advantages to leasing business space, there are also disadvantages as well. As far as repairs and maintenance goes, you have no control over them. They will get done whenever the building owner gets around to it, if ever. Another issue with leasing commercial space is that you will most likely be faced with yearly rent increases. These increases will take more and more of your bottom line. There’s also the possibility that the building owner will decide not to renew your lease at its expiration date. This means having to renegotiate the terms of the lease, if at all doable. If not, you will have to spend time looking for another venue. There’s a chance that it might tick off your customers when you move to a new location.
There are a lot of things to consider when thinking about leasing commercial space. You will want to do your homework when looking into various locations, the tax ramifications, and monthly and yearly expenses, in addition to what you’ll be getting and what you’ll be giving up as part of this arrangement. If you look at all the angles now, it can save you time, money, and aggravation further down the road.