Rent/Buy Office Space

Posted on August 6, 2018 in News

Any company faces a choice: to rent an office to rent or buy. What's more profitable? On the one hand, real estate – is a profitable cash investment. On the other hand, buying property adds additional problems: registration, maintenance, maintenance of premises, maintenance, etc. For startups office rent is more advantageous: it allows you to quickly start, change room for the expansion of the company, and in case of collapse of business – avoid problems with the distribution of property rights between the founders. Thus, the rental office allows the lowest cost to start a business. Rent office allows mobile adapt to changing conditions market and external environment. In this case, the cost of doing business is less.

Buying your own office, the firm becomes dependent on the premises. Business grows, the company organizes new units, adds staff and gradually comes to that office space, which it owns, it is no longer satisfied. There is a problem – you need to change to more spacious premises. But to sell office space today in order harder than buy. Owning your own office – it definite plus for the company's image, as well as long-term investment in liquid assets (in the case of a correct choice of the building).

In addition, private property – is the ability to use commercial space for rent rent or resale to, and the ability to use it as collateral in the bank. However, buying property, you must invest a lot of money at a time. In addition, the company's balance sheet will be weighted building, which requires the maintenance costs. How are both buying and renting office has its own advantages and disadvantages. But according to statistics, most of St. Petersburg companies still prefer to rent an office to rent. According to research conducted by BusinessVision, in St. Petersburg, about 80% of companies lease office space. Among the tenants as small firms and large manufacturing companies.