Should I Own or Lease My Office Space?

Every other few years when lease rates are skyrocketing (like they are in Austin, Tx right now) many businesses start to wonder if they should lease or purchase their office space.  For some it makes sense to own….for others it makes more sense to lease.  It depends on a lot of factors including your current and future business growth needs and objectives.  In a recent post I highlighted the pros and cons of buying vs leasing office space.

You should consider buying if:

  • You have a handle on the number of employees you need now and 3-5 years from now
  • You have a good grasp on your current and future growth needs
  • You have the cash reserves for the down payment
  • Lease rates are inflated in areas that have historically had lower rates
  • Interest rates are low.  Access to cheap funding makes buying look attractive

You should consider leasing if:

  • You don’t know your current and future growth and employee needs
  • You are low on cash thus do not have the funds for a large down payment
  • Interest rates are high



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