Are you a business owner looking to relocate your office, but you’re unsure whether you should buy or lease office space? If so, you’re not alone.
Many business owners face this dilemma. Is it better to purchase an office space where you can establish your business, or are you better off renting space?
Unfortunately, there is no one size fits all answer to this question. The best option for you and your business will likely depend on your financial situation, your strategy, your industry, and more.
For most small business owners, however, leasing office space is often the safer alternative.
What makes leasing the more attractive and feasible option for start-ups and small businesses? Here are a few benefits to renting office space instead of buying it.
8 Reasons to Lease Office Space vs. Buying Office Space
1. No mortgage
When you’re not locked into a mortgage loan, this frees up capital to put it where it is needed for other expenses such as R&D, marketing, personnel, etc.
2. No Down Payment
When you lease an office, there’s no humongous down payment! Leasing requires a smaller amount of cash up front – typically the first and last months’ rent. When you buy an office, you will need to put down a large payment between 10% to 30% and many new businesses or startups just don’t have that.
At the end of your lease term, you can easily decide to extend or not. It is much easier to relocate if you want to find a large space for your growing business or a place that suits your budget if you’re renting your current space!
4. Tax Credits
When you lease office space, your monthly payments are tax-deductible as a business expense.
5. Prime Location
Renting office space in an expensive area such as Boston is usually much more affordable than buying. Plus, the location of a business can make a huge difference in a firm’s prospects. If your small business is dependent on location and image, then a prime location is key.
6. Fewer Responsibilities
When you are renting an office space, maintenance, repairs and modifications are usually taken care of by landlords. If you own your own property, this becomes your problem. When you rent, you can focus on running your business rather than dealing with the nuisances of managing a property.
7. Quick Move in Time
When you rent, typically there is a short lead-time to move in. (However, if you are building out a complete customized office space, then it may add some additional time before you can move in.)
8. More Free Time
Any type of property ownership comes with a lot headaches! A leasing option frees up your time as a busy small business owner to focus solely on running your business.
Still Wondering if You Should Own or Rent Office Space?
Whether you decide to rent or buy your next office space, there are pros and cons to each. Be sure to thoroughly explore your options before making your decision.
Thinking About Leasing Office Space in Boston, MA
If you are in the market to lease office space in Boston MA, consider Lakeside Park in Wakefield, MA! Located just minutes from downtown Boston, our affordable offices for rent provide everything you need to get your business up and running in short time.
You can learn more about our affordable Boston office space for lease here. We’re an especially great option for small businesses and start ups in the Boston area who are looking for a cheaper alternative to Boston office space. We offer a number of office space lease specials for new tenants as well!