Renting VS Buying Office Space: What’s Better? | Nawy

Are you a start-up founder or a small business owner whose business is growing and started looking forward to buying an office space that would take in your growing number of employees and their needs? But you are facing the dilemma of asking yourself about which is better the renting vs the buying office space options and why?

Usually-like any other thing in our life- each option has its pros and cons. That is why, this article will give you a full layout of the pros and cons of buying an office space and the pros and cons of leasing or renting an office space.

No worries, this article is going to cover all the questions you have in mind so, let us get you started.

Why Need an Office Space?

We cannot proceed to talk about the renting vs buying office space equation without first talking about the office spaces and their uses.

Usually, the office spaces are found in the business hub/section of the mixed-use projects which can be mere residential projects but with other facilities such as the commercial, medical, and administrative ones.

The office spaces are essential in many cases among which is when you are a founder of a new start-up and you are looking forward to finding a space to host and operate your business.

Also, you can be an already established business owner but you are looking forward to growing your business space or enlarging your organization.

Finally, you can look to extend the offices of your business and diversify them between the head office and the branches.

In all the cases, you will need to face the dilemma of renting vs buying office space which is better whether to buy vs to rent, and the renting vs buying pros and cons, and which is better in the long term; lease or buy?

But, before we can answer these questions, we need to understand first the difference between buying or renting in general.

Rent VS Buy: Which is Better?

In order for us to be able to give you a better picture of the renting vs buying office space equitation, we need first to understand the dynamics of the buy vs rent for any real estate property whether it’s residential, commercial, medical, or administrative property.

Choosing between leasing/renting a property or buying it depends mainly on many factors but among the most important ones, we find:

1. Your budget and cash flow(most definitely having cash flow and a bigger budget enables you to buy the property and vice versa)
2. The duration of using the property (if you will need it for a short time, it is better if you rent it)
3. The use of the property(buying is better when it comes to houses and offices while renting or leasing is better when it comes to clinics and retail stores)

These three criterion points can be your guide for the rent vs buy dilemma in general and the renting vs buying an office space specifically.

So, now it is easier to decide between the lease or the buy option for an office thanks to these criteria and to the pros and cons of each of buying and leasing the office space that we will go through in the next section to have a solution for the renting vs buying office space dilemma.

Renting VS Buying Office Space

In order to be able to decide between renting vs buying an office space pros and cons, we need to take a look at renting vs buying pros and cons.

To break down the renting vs buying office space equation, let us first look at the pros of buying your office space and they include:

1. Having complete control over your property is the thing that enables you to make whatever changes, maintenance, or decorations you would like to.
2. In case you have extra space or excess space than your business needs, you can rent this space and get rental income and generate a high return on investment.
3. After your need for this space comes to an end(whether for reasons of retirement or expansion), you can rent this space to a tenant.
4. You will not face the potential danger of increasing rent costs so, you keep a fixed cost only.
5. If you are the owner, you will never face the danger of being laid off from the property whenever the landlord decides to change its activity, which means more stability.
6. The budget privileges include having fixed costs, tax deductions, and potential long-term savings.

On the other flip, leasing or renting an office space comes with many cons including:

1. The rent rates are increasing annually and maybe monthly(which is the cost of renting vs buying).
2. The landlord will impose his rules on you and on how to use his property.
3. Being at the mercy of the landlord’s timelines.
4. Strong restrictions on changing or modifying anything in the office and maybe even the seating of your employees.
5. You might need to buy broker fees if you used a broker or an agent to find your space.

Now, do you know which is better in the renting vs buying office space equation and you know what you will do?

You definitely contact Nawy’s property consultants team but why and how? Know in the following section.

Buy Your Office Space Now!

The renting vs buying office space or the rent vs buy dilemma is now over thanks to the full insight that was laid out in this article on the pros and cons of renting vs buying an office space and you can now make a well-informed decision.

So, what can you do now after realizing that buying comes over renting in the renting vs buying office space dilemma?

You can simply contact Nawy’s property consultants team via WhatsApp or by filling out the below form to learn more about the available office spaces.

You can also navigate through the Nawy Website or mobile application to see all the available options.

Also, don’t forget that if you want to invest your money in the right place, you can choose Nawy Shares so you can buy your office space but invest your money in another property.

We hope you get over the renting vs buying office space and find the best fit office space for your business.