Every growing business reaches a point someday where it has to decide between buying and leasing a space for office.
Buying has its perks, and is a great option for many businesses. But for the majority of new businesses, leasing an office space makes a lot more sense than buying one. That is because, when it comes to fresh businesses, leasing offers a number of advantages that buying does not.
What are those advantages? Let us have a look:
Flexible length
With the option of leasing, a business can find a space for office for a set duration of time. Some office spaces are leased out for a few years, and some others for just a few months. Therefore, a business can easily get a space based on its length requirement. There is no need to accept a longer term than necessary, or in other words, to compromise.
Low investment requirement
New businesses, especially the small ones, rarely have the financial strength or capital to invest millions of dollars in order to build a great office ambience. Leasing gives these businesses the option to own a good office space without actually having to invest a sizeable sum of money in the beginning. What that means is cost effectiveness and leasing go hand in hand.
Ease of relocation
Once the term of lease expires, a business is free to relocate to a new location, if it so desires. There are no strings attached to force a business to continue leasing the same space. However, relocating is not as simple as that when a business has its own office in a particular location.
Tax deduction
Since leasing an office space can be regarded as a business expense in a strict sense, there is provision for tax deduction against the cost of leasing. This is not the biggest relief of all, but it is still a relief.
Premium location
Many businesses depend on the location of their establishment in order to expand and profit. For such businesses, it is important to have their office in a location that has a certain level of appeal to it. And appealing locations are never cheap. Since building an office in a premium location can cost millions of dollars, or even billions in some cases, leasing makes a lot more sense.
Leasing a space for office has a few disadvantages associated with it, as well. However, the advantages far outweigh the disadvantages, especially for new businesses.
