Are you going to buy a property, or just lease for your business premise? – This is the question for many entrepreneurs and business owners and it can be a confusing issue. If you ask a professional real estate broker, he or she will probably tell you that it depends on the particular situation. The truth is, when it comes to this important business decision, there really is no “one size fits all” solution.
The primary disadvantage of purchasing a commercial building is the major expense of an upfront down payment. Selling the property may present problems in a down real estate market if you decide to relocate your business.
For those who are lacking sufficient capital to purchase a commercial premise, then the decision becomes easy and obvious one. However, leasing may be the smartest move anyway: Statistics show that most new business owners start out by leasing office space, and many business consultants advise leasing your workspace until you get on your feet and your business starts operating in the black.
One of the biggest advantages of leasing a commercial property is flexibility. Of course, when the lease is up, you can easily relocate to another commercial place that better suits the needs of your business and more importantly, your budget.
Moreover, you also don’t have to be responsible for maintenance, security, remodelling, and other management issues. That’s the responsibility of the landlord or property manager. This can represent substantial savings if the property requires a major repair expenditure, such as replacing a water heater, plumbing or electrical system.
To keep the office space expenses for your small business at a minimum and make office space expenditures more cost-efficient, there are several steps you can take. If you own a retail store, expand your business online; this doesn’t require securing additional space.
You can also check this to learn more about leasing business premise: https://www.smallbusiness.wa.gov.au/business-advice/leasing-business-premises