Should you lease or buy office space in Florida?
We are all aware of the fact that small businesses and startups grow in stages. So, what was convenient for you and your company, in some of those first stages, may not be convenient now. You might have had only two employees when you first started, but as your business was growing, so was your client base and the need for more products and services. Now, or in the near future, you have 20 employees, the need for more equipment, and more space for everybody ane everything. This is when you have to expend and relocate your business elsewhere. But, that is not the only thing to do – you also have to decide whether to lease or buy office space. Thus, if you are from Florida, and you need help making this decision, keep on reading.
Ask Yourself the Following Questions First
Moving your business and deciding whether to lease or buy your new office space is not an easy thing to do, but it is something you must do when starting your business. A lot of aspects have to be considered before you make your decision. Thus, in order to do that properly, ask yourself the following questions:
- For how long will I be able to commit to a new location? If you need just a short term solution for your new office space, better consider leasing. It is more cost-effective. All business owners who are not sure about every possible aspect of their business should do the same. If however, you are satisfied with things as they are, then buying is a better solution.
- Do you plan on expending your business? If your business is rapidly growing and you have the constant need for your products as your client base is growing too, leasing might be a better idea. That way, you will have more flexibility, and relocate with the help of movingkings.com when necessary. If you continue to buy new office spaces while your business is growing, you will make a lot of unnecessary expenses.
- What about the market and the local economy? If you are not sure about the current economy, again, leasing is a better idea. It will give you flexibility and the possibility to relocate your business elsewhere. However, if you are in a prominent area in Florida, where prices continue to rise, now would be a good time to make a purchase.
Pros of Buying Office Space in Florida
If you lean towards buying office space in Florida, you will be glad to hear that that decision will come with a lot of advantages. Firstly, Florida has a good economy and it is considered a great place for start-up businesses and generally for owning businesses. You will have fixed costs or no costs whatsoever if you pay everything upfront. Moreover, if you own and use the same office space, you will get tax deductions. There is also a possibility of renting the space you do not use, and thus have a source of income. Finally, if something happens to your business you can always sell it to make up for all the money lost. Also, you will not have to worry about your retirement, as you can always sell your business and live from that money for a long time.
Cons of Buying Office Space in Florida
As we all know, everything that has pros must also come with some cons. The same applies to buying office space in Florida. You might be persuaded by all the pros we mentioned above, but do not forget that cons can too make or break your business. First, consider the upfront costs. You will have to prepare a large down payment, as well as pay a large sum of money each month for your mortgage. Then, there are all the costs that come with renovation, remodeling, maintenance costs, and who knows what else. Moreover, you will also face a lack of flexibility. So, once you buy your property, that’s it. So, make sure it is big enough for your company to grow. Otherwise, you will have to start working on finding the right storage provider as well.
Pros of Leasing Office Space in Florida
And now, let us tackle the issue of leasing office space in Florida. This is a good idea if you are just starting your business. It is much better not to commit and spend large amounts of money upfront. Moreover, if your business continues to grow, it is much easier to keep relocating than keep reselling and rebuying. You will also have more money to invest in developing your business, and money is something every startup needs in order to succeed. And, of course, you will have a lot more time and energy. Be sure that when you own a business, you will have to take care of a lot of things besides your business, like constant remodeling for example. Your only focus will be your business and thus, you will avoid any additional headaches.
Cons of Leasing Office Space in Florida
However, be sure that when leasing your office space, your rent might increase annually, sometimes even monthly. This is because the economy is booming in Florida, and so is the market. The competition is huge, and renters tend to take advantage of that. Moreover, you will give money each month for something that is going to be somebody else’s in the end. So, no equity. And if you have the need to make even the slightest changes, you have to wait for your landlord’s approval. And, you will never have security as landlords have all the right to kick you out which is certainly one of those biggest commercial lease horror stores. Thus, really think through before you make any decision.