Why Rent Your Office Space?

Posted on August 01, 2016

Many view buying a new office building as a sure sign of growth for a small business or startup. While this may be true, with the purchase of commercial real estate comes the responsibilities that come with ownership. In many instances, seeing to these obligations can pull your focus away from providing the best services to your customers and clients. Throw into that the added financial burden of meeting all of your new overhead costs, and soon the decision to purchase your office space outright may not seem so sound after all.

Some Points to Ponder

That’s not to say that buying isn’t a good option; rather, your decision to buy or rent your office space should depend largely on the current circumstances of your company. When contemplating your options, ask yourself the following questions:

·         Are we in a position to absorb the cost of owning our own building? On top your monthly commercial mortgage payments, ownership brings with it the need to pay utility and overhead costs. Renting office space, on the other hand, often eliminates these added expenses. Plus, many professional space providers today also offer support services, such as administrative assistance and IT.

·         Is expansion or downsizing a possibility in the near future? If the answer to this question is yes, then buying a building now could soon leave you saddled with a property that no longer can accommodate your needs. A rental or lease agreement, however, allows you the flexibility to move locations quickly with fewer financial consequences.

·         Would the investment we make in equity be better used elsewhere? If yours is a fledgling company, then the funds that would go into building equity in a commercial property may be put to better use by investing them directly back into growing your business.

After pondering these points, don’t be surprised if you discover that in your particular case, renting may prove to be your best option at this moment.

There may indeed come a time where the growth of your company necessitates owning your own location. Until then, however, why sacrifice the financial and professional flexibility that renting currently offers you? With private office rental providers like the Gateway Office Business Center so eager to help set you up at an idyllic location, renting can place you in a prime position to succeed.