Should You Buy or Lease An Office Space?
Office spaces have always been a lucrative option for Fortune 500 companies to expand their business. Even though the pandemic might have stalled the business inflow, the boom observed in the IT sector, plus the back-to-work movement has elevated office spaces to one of the most rewarding investment opportunities. Needless to say, offices are here to stay.
It is essential to leave no stone unturned before either buying or leasing an office space. Major things to keep in mind include (but are not limited to):
- 1. Accessibility from different modes of transport
- 2. Vicinity to commercial hubs nearby
- 3. Major industries in the area
- 4. Potential to grow in the coming years
- 5. Infrastructure and amenities of location
At Trehan Iris, we understand the importance of high performance office spaces and have established our roots in one of the fastest growing business districts in Gurugram. Our portfolio of premium offices creates an ecosystem where productivity and efficiency take front foot and transform how we do business. Whether you plan to buy or rent office space, Trehan Iris has you covered.
Once you have weighed the pros and cons of a specific property, it is time to decide whether to buy or lease it. In this article, we wish to discuss both in detail to help you decide which option is best for you.
Advantages of Leasing Office Space:
- More authority over finances: One of the most advantageous factors of leasing office space is that it gives you more charge over your money. The investment is limited with no stress of any down payment. There is, however, a security deposit charge, but the amount is very affordable compared to what you have to fetch out when you buy the space. This enables you to spend your money on better things, such as the expansion of your business.
- Reduced responsibilities: When you lease an office space, you can leave most of the repairing costs to the landlord. Do keep in mind to negotiate this in lease terms. Maintaining the cleanliness of interiors and the functionality of your equipment will, however, fall under your domain. So, before the final signing, be clear about who is responsible for which maintenance and repair.
- Greater accessibility: Leasing office spaces comes with the opportunity to establish yourself in excellent commercial hubs. Thus, you get the advantage of seeking out the talent pool that resides in the vicinity. Naturally, the better the office location, the more popular it will be. A space where premium Fortune 500 companies have come to expand their business witnesses superb real estate development to accommodate the cream working class. Leasing office space in such an area creates a win-win situation for both employers and employees.
Advantages of Buying Office Space:
- 1. More scalability: When you own the property, you have more flexibility to mould and reshape it however you want. This gives you endless possibilities which will otherwise be compromised if you were to lease. Unlike leasing, buying gives you the option to customize your office space as per your needs.
- 2. Greater profitability: If you are thinking long-term, then buying an office space will be a better option. While leasing office space will be less expensive in the short term, buying office space will prove to be more cost-effective. All the profit that you generate off the property will ultimately be yours for the taking. In addition, when you buy an office space, you don't have to worry about the rising cost of rent over the years.
- 3. Land value: If your office is located in an area which is witnessing a steady appreciation of land value, it will be best to buy the property. Such a property will give high returns when you decide to sell it off. To understand which property is capable of appreciation, it is best to consult a real estate expert to better understand the latest trends in depth.
- 4. Additional income: When you buy a property, depending upon your use, you can rent out space which you don't need. Thus, along with running your own business, you can generate additional income.
In the final analysis, it all boils down to your understanding of your business and the office space you choose. By keeping in mind the above factors, one can try to find their place in either one of the categories. It is imperative to have a sound knowledge of the market and how your choices will impact your business in the short and long term. Trehan Iris simplifies your search for office spaces for rent in Gurugram . Our top-notch projects and premium offerings make Trehan Iris the preferred choice for taking businesses to new heights.