Office surroundings can impact positively or negatively employee productivity, morale, and the company’s future growth. Your employees should be excited when coming to work and not dread it because of the office environment. Some offices lack sufficient natural light because of the lack of enough windows, while others are neglected such that they need remodeling. As a business owner, you are probably in a dilemma about building an office or lease space for your office. Let us look at the benefits of both options to help you make an informed decision.
Benefits of Building a New Office
You Are Your Landlord
It sometimes can be a pain to deal with a landlord. If you have problems with your office space, you have to report it to the landlord to fix it. Sometimes this is stressful as the landlord can take longer to correct the problem. If you are the building owner, you will solve the issue with the urgency it deserves. For example, if the roof leaks, you can immediately call the experts that Milford, Massachusetts residents trust, commercial roofing in Milford, Massachusetts, for roof repairs.
Customize the Workspace
When you own your office building, you have control over the space’s appearance and how it functions. You can customize the workspace to your liking and add any unique features that you desire. You can only bring in movable furniture and machinery in leased workspaces without making any permanent alterations to the premises.
Building your own space builds your equity in the long run. You can use the equity in the future to fund your retirement, fix property issues, or as security for business expansion. You will also receive tax benefits and take in yearly depreciation deductions on the property.
When leasing an office space, you are enriching your landlord. Why don’t you maximize the opportunity to build wealth by owning commercial space through building one? When thinking about building long-term wealth, you should start by avoiding rent payments. You can also become a landlord by renting out part of the building.
Benefits of Leasing a New Office
Leasing office space provides more flexibility for the business as it grows. You have the freedom to choose the length of the lease without being involved in property ownership. When the lease expires, you can choose to renew it or decide to move to another place that best suits your growing business.
Leasing property makes good business sense. When leasing, the upfront costs are lower than when building or buying an office building. Leasing ties up less capital when compared to building business premises, which frees up cash for use in growing the business.
When renting business property, the business owner is not affected by interest rate rises, but the rent may be increased after rent reviews. Before signing the lease, check on how the rent is reviewed to avoid any surprises. As the building owner, you risk experiencing unpredicted economic fluctuations like a decrease in property value; when leasing, you do not have to worry about this as you are not the property owner.
Less Maintenance Responsibility
Depending on the lease terms, you may have fewer responsibilities concerning the building than owning a business property. Tenants are tasked with making minor repairs and maintenance on the inside of the premises while the landlord takes care of external maintenance.
More Time to Grow the Business
Building an office takes a lot of time in planning and engaging the contractors. Leasing frees up your time to enable you to concentrate on and grow the business. A new business needs all the attention it can get from the owner as the initial stages of any business are crucial for its growth.
Operate in a Prime Location
Renting office space allows the business owner to rent in a prime location with a good image. Most people cannot afford to own or build an office in prime locations due to the high costs. Businesses that depend on image and locations, such as restaurants or retail, should go for the leasing option.
Should I Build or Lease Office Space?
The final decision on whether to build or lease will depend on your budget and preferences. If your long-term goal is to build equity, then building or owning is the best option, but be ready to incur maintenance and mortgage payments.