Any company at least once had a question about buying or renting premises. Each of these actions has its pros and cons. Let’s take a closer look at them.
Benefits of office space for rent
The first and main advantage of single office space for rent is its availability for young companies that are just starting their development. To rent a room, you do not need to make large initial investments associated with the acquisition of premises and repair work. Yes, and new companies may not have such funds – and then renting a room becomes their only way out.
Another private office advantage is the ability to quickly move to the office and get to work. Not all companies need exclusive, time-consuming repairs. But even if they want to set up a workspace, tenants run the risk of hurdles. For example, many aspects of office renovation and redevelopment depend on the consent of the management company, which may have its own views on the interior and exterior of the premises, advertising outside the building, etc. But there may be another plus. Here you can rent an office with already renovated and necessary technical equipment.
Another advantage of renting is the flexibility, the possibility, depending on the circumstances, to find a small or large office space for rent. This allows the company to adapt to the market and not overpay in situations where there is an opportunity to save.
Also, when renting an office space, there is no need to manage the office space, and the owner takes care of all maintenance issues.
Cons of renting:
1) When conducting an office lease transaction independently, various difficulties are possible.
As a rule, they arise at the stage of searching for a suitable office space. Sometimes the selection of the optimal office for a company is delayed indefinitely, slowing down the start of its activities. There are plenty of reasons for this: sometimes the location is not suitable, sometimes the rent payments are disproportionately high, sometimes the lease term does not meet the needs of the company, etc.
2) Despite the contractual terms, the tenant is dependent on the landlord. And in some cases, the owner of the object may find legal grounds for terminating the lease to give the area at the request of a larger and more well-known company. And then the location will have to be changed forcibly.
Benefits of Buying a Chicago office space
1) Having your own premises is important, because it indicates the success of the business, signals profitability, and makes it attractive in the eyes of investors and creditors.
2) When renting a room, you overpay in an amount many times higher than the lump sum that we would give for the same office if we bought it. Experts say that office rent will be unequivocally profitable only in the short and medium-term (2-5 years) for companies with a fairly high income.
3) In addition, having bought a room for itself, the company ceases to depend on the mood of the landlord. And also in any crisis situation, they may not worry that they will be left without an office. When buying, you can be calmer about your premises.
4) Unlike rented premises, the possibilities for arranging your office are practically unlimited. This gives you the opportunity to design the workspace to your liking and in accordance with the corporate image of the company.
5) in case of unforeseen circumstances, you can rent out your premises and receive additional income from the rent.
Cons of buying an office
1) The need for a one-time investment of a large amount of money, which not every company can do.
2) When buying an office space, the owner company will have to solve most of the maintenance issues on its own.
3) If an office is purchased for the purpose of subsequent leasing, this must be taken into account: in a crisis, the search for a tenant who is ready to pay an acceptable amount for the premises may take an indefinite time.
4) Maintaining commercial premises is very expensive: they are subject to high taxes.
5) The procedure for acquiring an office is laborious and the entire property registration can take up to a year, and sometimes longer.
When deciding to buy or rent an office, you should definitely turn to professionals in the field of commercial real estate, who will competently and professionally conclude a sale or lease transaction in the shortest possible time, which will undoubtedly contribute to the successful development. and business prosperity in general. Before concluding a lease agreement for premises, carefully read all the clauses of the agreement, special attention should be paid to the text printed in small print. If something is not clear to you or seems insufficiently expressive, seek legal advice. Conclude an agreement with the landlord in such a way that its terms are transparent and beneficial to both parties. As for the acquisition of office real estate, where one cannot do without the participation of a lawyer. Check a thorough examination of the premises and documents.