What You Should Know When Considering Leasing Vs. Buying Your Office Space

Leasing Vs. Buying

One major cost for a business is that of the office space, especially for many small businesses that have limited financial capital. Whether you should go for leasing or buying an office space depends on various factors related to your business and resources.

We have listed the major advantages and disadvantages of leasing and buying to help you make a decision conveniently.

Leasing: Pros and Cons

Leasing is a very common option to get an office space, especially for the small business owner who has limited resources and are unable to go for the down payment for purchasing their office space.

One of the major advantages of leasing is that it does not involve upfront huge expenditure like a down payment. The capital saved like this could be spent on promoting your business whether through advertising and marketing or by getting more employees for your business.

Another major benefit of leasing is that it does not restrict your relocation over the years, which become quite difficult with purchased office space. If you have not yet found the desired location for your office, then you can settle temporarily and move afterward when you get the ideal space.

Leasing also enables you to get an office space in an upscale area that might be rather expansive for purchasing.

On a leased property, you are not responsible for repairs and maintenance, rather the landlord pays for all that. This also helps you to save quite a lot of money, especially if the [property requires some major repairing.

The major disadvantage of getting office space on lease is that you are unable to build up any equity in your office space property. Moreover, with every lease renewal, there is an unspecified increase in the leasing amount that can disturb your expense budgeting.

Buying: Pros and Cons

The primary advantage of having your own office space is that you can build equity in your office property and use it as the collateral to finance your business expenses. Major expenses like mortgage payment remains stable, unlike rent.

This makes budgeting easier by projecting future expenses. You can also rent out any part of the office space if you have more space than required. 

This will also bring some extra income that would be spent on your business. Property owning means it can be deprecated and so, reduces the tax liability.

The major disadvantage of buying a property is the upfront expense of down payment. Then, in the future, if you decide to relocate your business, you will have to face a lot of inconveniences and hassle to sell out this property, especially if the real estate market is down.


By taking small but significant steps you can make your office space expenses minimum and thus balancing a cost-effective expenditure. Like if you are a retail store owner, try expanding your business online. You won’t need any extra space for that.

Maybe using telecommuters can obviate the need for a big office space for your small business.. You can also share office space with some other small businessman that may need a similar type of office space like yours. This will help you in cost savings and give your bottom line a push.


  1. Wonderful strategies. One of my friend working for a reputed business brokerage firm in US. May be California business brokers https://www.exitstrategiesgroup.com/ could some help. Business brokers can easily guide for buying and selling business.

  2. Nice article, Which you have shared here about the office space selling. Your article is very informative and useful to know more about the difference between Office Space Leasing and Buying. Thanks for sharing this article here. Buy or Sell a business in Southern California


Post a Comment

Popular posts from this blog

What You Need To Do To Set Your Retirement Accounts Free From Bankruptcy Tangos

How To Measure The Rewards Of Social Media