Office rentals serve a different purpose than buying space, depending on what you need. The decision of buying or renting rests on several factors.
Both companies and individuals should consider the profitability of acquiring offices over the long-term. For short-term office spaces, it works when most of a company’s employees rarely spend time inside cubicles. In addition, rental companies shoulder the cost of upgrading facilities and equipment, which saves you the time and cost of doing so when you buy it.
However, that doesn’t say buying office space is not a good idea in itself. It just relies on several factors, including the nature of your business.
The Right Time to Buy
Buying office space sounds more applicable to large and established companies than for start-up firms, but every big thing comes from a small one, meaning that acquiring space is a good idea if you have plans for expansion.
The amount of space rather than a company’s size should determine whether or not you should buy an office. Hence, when you’ve just started a new business, it’s prudent to acquire less than 50 square meters.
Time serves as another factor. Are your employees working on a virtual arrangement? Most are mobile and frequently working off-site? Then renting appears to be a better choice. Office rentals for the short term provide flexible contracts, which you can negotiate for purposes such as gathering for meetings among other functions.
Across the U.S., office rents are on an upswing, according to a JLL report. Dallas office rentals topped a list of international cities that recorded the biggest rental growth in the second quarter of 2016 compared to the first.
The report also showed that demand for offices in the country has surpassed the level of new construction, which could indicate that office rentals will continue to be a viable choice for many companies.