Should I own or lease my office space? This is the million dollar question that I get all the time. Owning vs leasing depends on a number of factors however the most obvious questions I have my clients answer for me are:
- Will you have relatively the same number of employees 5-10 years from now as you do now?
- Can you afford to sit on cash that will be needed for your down payment (20% to 30% of purchase price) for the next 5-10 years?
- Can you hold the asset for at least 5-10 years?
If you answered yes to those questions then owning might be a fit for you. Other factors to consider are whether this is an owner occupied purchase or for investment purposes where you would lease out office space to other companies.
If you would like to learn more about whether or not you should own or lease your office space don’t hesitate to