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Leasing Office Space - Is It Your Smartest Move?

By Tom Troccoli

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If you're thinking about moving to a new office space, there are a few things to consider before making the move. First you need to figure out just how much space you'll need! Hopefully you're moving because your company is growing, in which case about 175-225 square feet per employee is a good figure to go on.

Once you know your size requirements, a big step is deciding whether to buy a new building, or simply lease your office space. Both options have their ups and downs and will take research to make an educated decision. Any decision that could affect your business is a big one, so be sure to take your time and educate yourself on leasing and buying before you decide.

When you buy your own space, there's no landlord or stipulations to worry about. The freedom to come and go as you please, make additions as you please, and more can be a wonderful one. Not to mention, your costs are fixed by a mortgage, which also gives you a great tax deduction.

Buying does have some difficulties associated with it though. You have to be responsible for a big down payment, as well as office equipment, utilities, internet and phone and much more. Your upfront costs include the down payment as well as any moderations that must be done to the building to suit your wants and needs. Also, a sale is final - if you outgrow the building within a year, you're still stuck with it.

Leasing office space, on the other hand, allows you the flexibility of moving when the situation calls for it, whether your company is growing or you wish to remain small. For business owners looking to keep their costs down, renting your own office space has much less initial cost associated with it when compared to buying. You simply pay a set fee per month and most any service you need is rolled into the payment.

It can also cause much less stress on business owners since you don't have to worry about the everyday management of a building. If you're leasing, the landlord is responsible for making sure you've got electricity, heat, internet connection; pretty much anything you might need. By leasing, you may also be able to afford somewhere nicer than you thought possible.

Location, for many businesses, is definitely an important consideration. It can do a lot for your image and for driving more customers your way. A beautiful, well-maintained setting tends to be more impressive than a congested, crowded looking office building. The one thing to consider is that leasing commercial space can often have variable rates - meaning your rent can go up, as can other costs, so it's important to read your leasing contract carefully, even the fine print.

A lease for commercial property can often be negotiated and since the landlord wants to rent the property , he or she should be open to the idea. While leasing can often be the perfect solution for many businesses looking to move, it's important to take all the angles into consideration. Most importantly, do your research to figure out which is the best choice for your business!
Tom Troccoli

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About the Author: Tom Troccoli owns and operates Regency Executive Offices in Lancaster, PA. He is a commercial broker with executive office suites for sale and lease, as well as a pro at leasing office space. He owns and leases several buildings in an affluent section of Lancaster.

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