This is a question that a number of company owners ask when looking for a new place, should I lease or buy my office space? There are a number of different factors that influence companies when making this important decision.
Reasons to Buy
The first reason to buy is the opportunity to acquire funds at low borrowing costs. If there is an opportunity to borrow money to own an office space, and the borrowing cost is low, those companies that are financially sound could consider this a possibility. The next reason is similar, but it would be to take advantage of the low commercial real estate values on the market. This, of course, is all subject to the economy and the value of the local CRE environment. But if the property value is low, it is a great investment to make, as long as you believe the future economy will pay you back the same or more for the property in the future. One of the final reasons to buy is simply your control of the quality of life that you have over your property and the property management that you can maintain on your own terms and budget. The risk you run through leasing subjects you to a property management team that does not handle the property to your liking.
Reasons to Lease
The first reason to lease right out of the gate is simply because of the lower upfront capital requirements that come with buying a property. A lease allows you to be more flexible financially than a buying contract. You will also be able to negotiate the length of the lease which will allow a company to operate at their own pace. It will be easy to opt out of a lease if your company is heading in a different direction than planned, as well. The one fall back with leasing a property is the lack of control you may have over the 3rd party who is in charge of the property you are renting.
To figure out what your best option is, please contact Scott Douglas of Douglas Commercial to see which option is right for you. Please call 301-655-8253 or visit our website https://www.douglascommercial.com/contact-us/