Office Rental Vs Office Purchase

Office Rental or office purchase is the question that every business thinks of at one point of time. Studios and gyms to private businesses, the decision taken varies. A few factors that businesspersons usually consider are mentioned below.

The Budget and Cash Factor: Office rentals ensure that you do not have to pay the whole amount up front when you lease as you do when you buy a place outright. For instance, an office area might cost up to $150,000 when it comes to buying the whole building and you have to pay that amount in one shot. However, when you rent a place in the same building, you might have to pay only about $4,000 per month. Moreover, when you buy a place, you have to face additional charges, such as loan fees, building inspections, and other such costs.

The Varying Cost Factor: If you buy an office space, you are not subjected to the varying market prices and therefore, it becomes one lesser burden. However, if you lease an office, the varying market might be a great disadvantage to you especially if/when your lease expires. This decision, however, should be taken depending on the long-term plans of your business. If you feel your office would expand soon, it is better to buy an office area. Office rental would not be a wise decision then because many leases have a clause allowing for an annual cost increase tied to changes in the Consumer Price Index or some other measure sewa kantor jakarta.

The Growth Factor: This factor deals with the situation in which your office strength grows in a short span. If you own an office space, it would be difficult to move out of your current office and find a new place. There would be several other factors that you would have to manage first before you move in, and the whole process would become tedious. However, moving out of a leased office is much simpler. Either you can wait for the lease period to expire or you can end it when you want to. This cuts through several hassles with office rental.

In general, a businessperson would first decide if he wants to stay in a particular area and continue with that specific line of business for many years or if he plans for something more short-term. If he wishes to stay for long-term, he can plan on purchasing an office area.

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