Save Money By Leasing Your Office Space
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by: TomTroccoli
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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.
Buying your own office space certainly has its freedoms - once you own it, you're allowed to do with it what you will. You don't have to worry about a landlord or stipulations of a contract. Your costs tend to be fixed, as you can lock in a long term mortgage. The costs of owning and running your own commercial space also provides good tax deductions in the form of property taxes and mortgage interest.
But that also means you have to deal with all the responsibilities of owning a property as well. The maintenance, the services and utilities needed to run any property (like water, trash, electricity, internet and phone service and much more) can be costly. You also must make a down payment and make any necessary maintenance to get the building in the shape you want it, which adds up to big upfront costs. Once you sign the contract, that's it, you're the proud new owner of the building and you still will be even if your company outgrows the space within a year.
Flexibility is a big pro in favor of leasing an office space. You can often renegotiate for more space if you grow, or simply move to a new building when your lease is up. There's also a smaller initial cost associated with leasing your own space. You sign your contract and you pay a set price per month that usually includes typical office services and equipment.
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.
Since location can really help or harm a business, it's definitely an important consideration. A beautiful building in a high-traffic area can easily drive new customers your way. A run down building in the middle of nowhere probably won't do much for you. The only problem is price - when you're leasing, the fancier the office, the higher the price and your rent can often go up. So always make sure you read all parts of your contract closely.
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!
About the Author
The author, Tom Troccoli is the owner of Regency Executive Offices in Central PA. He is a commercial broker with executive office suites for sale and lease, as well as a pro at leasing office space. He is the owner and leaser of several buildings in the Lancaster area.
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