The decision to lease or purchase office space is one of the most important decisions for businesses who are looking to expand into a definitive area. There are many things to consider.
First, you must consider the cost of capital – will you be paying more for your space if you lease or rent? Depending on the length of time that you think that you will be staying in a certain area, you may not want the responsibility of long-term maintenance in a building.
In general, initial fixed costs being high should be preferable to ongoing variable costs that can be raised at any point in time. If you’re in a state that does not have uniform title rates that are set by the state, you will need to understand the title services market in the area. For instance, finding a real estate title services Boston trusts is especially important because rates are not set by the state of Massachusetts.
Check the market as well. Will there be a rise in rental rates in the near future? You must also check the real estate market to see if there is an opportunity to profit if you own your property. There is always an advantage to owning property that is going up in value. If you are planning to stay in one place for a long period of time or the neighborhood is especially good because of additional development, it may behoove you to make a bid on the purchase of the property.
Lastly, how fast you expect your business to grow? Will you need to move into a new office within six months of getting into this one? If so, you may need to keep yourself free so that you can make that move without a great deal of financial hassle.
