Which is better: to rent or to buy office space? Here are the pros and cons of each.
There is one tough question that every business owner must face at some point: should you rent or buy office space? The benefits of even having a physical office location are apparent. Communication, collaboration, and bonding are at their best when in-person, and customers can see that you are here to stay when you’ve invested in a building. In other cases, a physical location is essential to providing your services. No matter what type of business you have, the question of whether to rent or buy office space is often muddy and nuanced according to each company’s circumstances. However, the classic list of what each has to offer can help you in your decision.
Renting Office Space
Pros
Renting office space is perhaps preferable for those testing the waters of working from an office. Leases are temporary, allowing you to move more easily should the need arise. Leases also give your company a tax cut as a business expense. Also, you won’t have to pay for maintenance and repairs, as that would be the landlord or property manager’s role. One can conclude that you can have more spending leeway when leasing, and invest more into other venues.
Cons
On the other hand, rent costs can increase or decrease, depending on the landlord’s ruling. It is not necessarily stable. Plus, you’ll constantly be paying for your space, whereas a mortgage has a definitive end. You may not be as free to refurbish the unit as you wish, and you can never gain equity.
Buying Office Space
Pros
You can also save quite a sum when buying office space as well, perhaps even more than when you lease. Purchasing commercial property also includes tax deductions, and in this case, your mortgage is at a fixed rate. You can build equity to fund your retirement, and lease out portions of your building if you have extra space.
Cons
Buying commercial property requires a significant downpayment; a company must have this payment saved up before making the leap. One must also be prepared to manage the property, from the landscaping to the carpeting to the HVAC unit, although a property manager can assist here. Unexpected repairs could arise, taking more money away from other investments.
Office Condos in Frederick County
If purchasing sounds like the best option for you, be sure to take a look at Conley Farm at Guilford Drive in Frederick County, Maryland for Class A office condos on pre-sale. This office/research industrial facility features spacious and high-end amenities. For more information, ask Clagett Enterprises!
Trust the Professionals at Clagett Enterprises for Your Realty Needs
If you’re looking for an experienced property management company, the perfect realtor for your property, or a professional to assist you during your purchase of any home, you can rely on Clagett Enterprises. Clagett Enterprises is a full-service real estate company with almost 30 years of experience in the Frederick and Western Maryland area. For assistance with commercial sales, leasing, management, and development and consulting, contact us online or give us a call at 301-665-6009. To meet our team and see some of our beautiful homes, follow us on Facebook and Linkedin.