To Lease or to Buy: What Fairfax Businesses Need to Know About Office Space
When you start a business, there is one question that you would inevitably have to face: To lease or to buy office space? This question has a lot of pros and cons. Many factors also need to be considered before you decide, including the current state of your business.
Whether you are a start-up company testing your feet on business waters; or an established one, you will soon have to decide if you need your own office space or you can just lease for the mean time. If you have plans to move your business to another location, it is best that you lease an office space. If you plan to get yourself a new one but your budget will not allow you at the moment, again, leasing is best. Constructing your office can be costly and you don’t want a negative number as bottom line figures of your finance report at year-end. Whatever the reason, there are several key considerations you have to keep in mind:
Evaluate the pros and cons of both buying and selling your office space. Buying office space is advantageous in terms of fixed costs and additional income. When you own a place you have control over overhead costs. You can also rent out excess space for additional income. Owning a place also allows the property value to appreciate over time. After a number of years, you will find that your property is worth double your initial investment.
There are disadvantages too. Buying office space would tie you down. If your growing business needs more space, your property might become inadequate. This will force you to sell and look for an alternative place which can be costly. If you bought a raw office space, then need to refurbish it by painting, installing cabinets, carpets, air conditioning and heating systems.
When you opt to lease a space, you can choose a more high-end office space Fairfax business owners prefer. These have good locations, are accessible and project a professional image. This also spares you the real estate worries that come with buying property; and gives you more time to focus on your business. Leasing would initially incur less expense and you can use your capital to grab business opportunities.
On the other hand, leasing an office space Fairfax has to offer might mean variable costs. Rent can increase unexpectedly, or you may be asked to vacate the space upon expiration of the lease contract.
Before you decide whether to buy or rent office space Fairfax has to offer, make sure to consult your accountant or financial planner. For more information, you can check out OfficeFinder.com or Business.com.
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