Is buying or renting commercial space the best option for your business?

What came first – the chicken or the egg? Is a tricky question. But determining whether to buy or lease office space is comparatively easier. Let’s see why.

Leasing office space has its short term advantages, you can avoid initial capital expenditure such as heavy down payment costs and EMI commitments. The maintenance and upkeep of these leased office spaces are handled by the property management services reducing your manpower and maintenance costs. However, buying your own office space has its own advantages and lets you save on the rental costs.

For a start-up business, renting a well-connected and centrally located office space is a good option as you can peg your expenditure at minimum levels.  But once your business starts to grow purchasing an office space is an ideal option as you can convert your profits into capital asset.

You may consider investing in real estate - buying commercial property that fits your budget and is of the right size. Appreciating land prices elevates and promotes your business too.

The most important issue that cannot be ignored is the property tax and capital gains tax. A visit to your legal and financial consultant will help you deal with these issues the right way. You can also use specific software to assist in this process.

Buying or leasing office space may be insightful as you will be constantly evaluating its pros and cons. We also need to figure out opportunity cost, appreciation, fixed and variable cost, property management, cash disbursement, and growth flexibility and constraints.

We know for sure that time is money and owning commercial space is not only profitable but makes the owner rich day by day. With effective property management services in place, the true value of the space can go up many fold. Proper evaluation of commercial property lets you can decide whether to rent or buy the property. 

Carrying out cash flow analysis lets you really understand the financial aspect of buying or leasing commercial property. Changing office spaces often due to high maintenance and rental rates is a daunting task and takes time, patience, and money that can be better invested in buying the office space.

Making notes and comparing basics on leasing and buying commercial property lets you predict and determine future price appreciation, cash-flow issues, down payment limit etc. Buying commercial space is recommended when your business is established, and you want to be in one location for a long time and make profit from real estate investment too.

At times midsize businesses need to be localised to accommodate employees and customers. As these businesses grow in phases, we need to negotiate inclinations and necessities. Depending on terms and equity required, investing in commercial space is recommended where you can lease extra space when not in use.

So remember, buying or renting commercial spaces needs evaluating its pros and cons in respect to your business growth and needs. 

Add Comment

weight loss supplements metformin weight loss new diet pill best diet supplements garcinia cambogia
comment by: Cameron  Posted on:Feb-14-18
best diet pills to lose weight weight loss injections metformin weight loss best diet supplements green tea weight loss
comment by: Casie  Posted on:Feb-06-18
Hi Guys Thank you so much for this wonderful informative article really Regards Baani Group - www baani com
comment by: Baani  Posted on:Jan-17-18
gwdkvmxy http kqcopy com generic viagra online a href http rebeccaharrell com buy real cialis online a qbfd http rebeccaharrell com - buy cialis otc
comment by: htaletbcaw  Posted on:Jan-05-18
loans online payday loans bad credit payday personal loan payday loans online no credit check
comment by: Ronnie  Posted on:Jan-03-18
Apeejay a href http abcworld co in Business Centre in Pune a is Providing fully-furnished and equipped a href http abcworld co in workspace in Pune a a href http abcworld co in commercial office space in pune a
comment by: Abcworld  Posted on:Nov-30-17
http canadian-pharmacies us com canadian drugstore a href http canadian-pharmacies us com canada pharmacy a http canadian-pharmacies us com canadian pharmacy
comment by: canadian pharmacy  Posted on:Nov-05-17
http viagrawithoutadoctorprescription us org viagra without a doctor s prescription a href http viagrawithoutadoctorprescription us org viagra without a doctor s prescription a http viagrawithoutadoctorprescription us org viagra without a d
comment by: viagra without a doctor prescription  Posted on:Nov-03-17
Thanks for sharing a such a good article this is really a good information about buying or renting office spaces especially in metro cities buying a property for small business is not such a good idea Renting an office space from business service compa
comment by: sai kumar  Posted on:Oct-02-17
allergy advice signs of rheumatoid arthritis http canadianpharmacy shop canadian drugstore a href http canadianpharmacy shop canadian pharmacy a http canadian-pharmacy us org canada pharmacy online
comment by: canadian drugstore  Posted on:Oct-01-17
arthr what organs are affected by asthma http canadian-pharmacy us org canadian drugstore a href http canadian-pharmacy us org canadian pharmacy a http canadianpharmacy shop canadian drugstore
comment by: canada pharmacy online  Posted on:Sep-28-17
severe allergy attack symptoms reasons for hair fall in men http canadian-pharmacy us org canadian pharmacy a href http canadianpharmacy shop canada pharmacy online a http canadianpharmacy shop canadian pharmacy
comment by: canadian pharmacy  Posted on:Sep-21-17
Kind-hearted morning evening sildenafil drug class a href http www viagrawithoutdoctor org viagra without a doctor prescription usa a sildenafil citrate tablets ip 100mg
comment by: Ugebs50  Posted on:Mar-08-17
Vaccination is awarded representing shorter visits to such additions if the traveler inclination many times be then e Theobald CE Jr Mats SH Reflect MJ et al Ophthalmic dolour because of adolescents few get attests and fewer after us Hobgoblins 123
comment by: Lssutue  Posted on:Mar-03-17
More of Mr Trump s tallboy nominees will without delay perceptive the Senate More Obama conduct policies will be tossed out When the president addresses a joint sitting of Congress a href http kamagrajelly us 89003 kamagra jelly a on Tuesday
comment by: ovh94w  Posted on:Mar-03-17
Oh my Power its you viagra and the health care bill a href http viagrawithout-doctorsprescription com viagra without a doctor prescription a cost of viagra in usa
comment by: khrhlev  Posted on:Feb-25-17
WASHINGTON On the efflux of fitness care Sens Bernie Sanders I-Vt and Ted Cruz R-Texas agree on exceedingly little Whole of the more vigorous exchanges came after Sanders asked Cruz if he believes a href http www viagrawithoutdoctorprescr
comment by: phjybxe  Posted on:Feb-17-17
You leave be without up on notified if we force in search anything more than your prescription Without the documents mentioned more than a href http viagrawithoutadoctorprescriptions org 21343da viagra without a doctor prescription a determina
comment by: onor56  Posted on:Feb-14-17
Decide because yourself what you imagine around the modish constitution sorrow law a href http tadalafil-overthecounteratwalmart top cialis at walmart pharmacy a based on the facts and not the talking points TIP We strongly suggest enrolling
comment by: ygbc70  Posted on:Feb-11-17
a href http www withoutadoctorprescription com canadian viagra without a doctor prescription a a href http www viagrawithoutadoctorprescriptionaustralia com viagra without a doctor prescription a
comment by: nwxl04  Posted on:Jan-30-17
The rout demonstration indicates that enormous blood albatross does not call headaches or nosebleeds except in the turn out that in the event of of hypertensive catastrophe a medical exigency when blood difficulties is 180 110 mm Hg or higher If your b
comment by: iweely  Posted on:Jan-28-17
Focus attacks chance all of a sudden but they normally upshot from long-standing humanitarianism disease Typically a href http cialissansordonnancefr com cialis 20mg prix en pharmacie a a waxy insignia builds up on the walls stomach your blood
comment by: jfsmum  Posted on:Jan-25-17
The get the better of manifest indicates that enormous blood stress does not cause headaches or nosebleeds except in the box of hypertensive crisis a medical predicament when blood tension is 180 110 mm Hg or higher If your blood intimidate is unusuall
comment by: fjxhbx  Posted on:Jan-22-17
Blood coercion measurements can fluctuate everywhere the age and a href http cialissales accountant 30202 cialis free voucher a in out of the ordinary environments The decision to start or multiply blood demands medications should not be based on
comment by: grpfhn  Posted on:Jan-21-17
On his whisper we ordered some a href http onlinepharmacy bid viagra-coupons costco pharmacy pricing a The elementary tenebrosity he took a certain 50 mg a href http levitrafor com 20mg-of-levitra levitra a on an trivial stomach We wai
comment by: Ifrbqbf  Posted on:Dec-27-16
a href http onlinecanadianpharmacys com online pharmacy canada a store medications solely in environmentally companionable and biodegradable packages as section of our guarantee to conduct in a href http www canadianpharmacylegit com cana
comment by: swnq58  Posted on:Dec-21-16
See you around a href http viagrawithoutadoctorprescriptionsafe com viagra without a doctor prescription a - non prescription viagra uk
comment by: zxtzmq  Posted on:Dec-14-16
What have you been up to a href http overcounterviagrasubstitute com 19556 viagra over the counter a
comment by: over the counter viagra  Posted on:Dec-12-16
Make enquiries ya a href http viagra-samples top pfizer viagra free samples a a href http viagracoupon top coupons for viagra a a href http viagrasamplepack top 61650 viagra samples for doctors a viagra is good for the heart
comment by: viagra coupon  Posted on:Nov-21-16
Do not hasten after taking a href http tadalafilwalmart com cialis walmart cost a Dated men need to be extra careful It is a stringent supervision in compensation them to capture the drug at most if they have permission from their healthcare pr
comment by: cialis over the counter at walmart  Posted on:Oct-31-16
From schedule to time we may also plea other documents including a href http pharmacyatwalmart com walmart levitra a but not limited to management issued photo ID or licenses Cessation assured the protection of your personal advice is a top p
comment by: Acoutget  Posted on:Sep-26-16
chanel http www hazlemeregolfclub co uk calendar youtube html GG
comment by: pletcherfbo  Posted on:Sep-01-15
a href http maria-rapaz pt img system html a http microdigital pt systems html
comment by: carpinteyroakx  Posted on:Aug-19-15

comment by: pletcherrya  Posted on:Aug-03-15

comment by: carpinteyroxds  Posted on:Aug-03-15

comment by: pletcherngk  Posted on:Aug-02-15
3539-50 a href http portugalgay pt apoio index html a
comment by: carpinteyrorkd  Posted on:Jul-30-15
comment by: testing  Posted on:Jul-23-15
comment by: testing  Posted on:Jul-23-15