If you are looking to grow your small business beyond your home and into a commercial space, you might be wondering if it's better to buy that space or look for office space for rent. While there are some benefits to buying commercial property in terms of creating a permanent location for your customers, it's often better for small businesses to rent their office space initially. Here's a look at a few reasons why you should consider office space rental instead of purchasing a commercial property.
Fixed Costs Are Easier For Small Businesses to Budget
Perhaps one of the biggest advantages to renting office space for your business instead of buying a commercial property is the ease of budgeting the costs. When you rent office space, your expenses are clearly defined as the rental cost and the cost of utilities.
If you buy commercial property, your expenses are far more unpredictable. Not only do you have the cost of the property and your utilities, but your company will also be responsible for property repairs and maintenance. This situation can be unpredictable and costly. When you rent your office space, these costs are typically the responsibility of the property owner, not your business. That makes it far easier for a small business to budget their overhead expenses with rented office space because you won't have any surprise repair expenses to deal with.
Rented Spaces Allow For Faster Start-Up
Another benefit to choosing rented office space instead of purchasing commercial property is the fact that it's quicker and easier to get your business up and running in rented property. In most cases, your office space rental will be turn-key, especially if you negotiate any interior layout changes as part of the lease agreement. You won't have to spend days or weeks dealing with structural changes, repainting, or other infrastructure concerns. You can just move in and get things started. This means minimal downtime and less disruption to your company's revenue stream.
Rented Spaces Offer Greater Flexibility
For small businesses, the market can be somewhat unpredictable. You never know if you're going to find rapid growth and success or struggle to find your place in the market. That's another great reason to consider renting your office space initially.
You'll have the flexibility to respond to rapid growth by transitioning into a larger space when needed, and you won't have to worry about trying to negotiate the sale of a costly commercial property investment if your business doesn't succeed.
As you can see, renting office space definitely has its advantages for small businesses. If you're looking for commercial property, consider exploring local office space for rent before you commit to buying.