Many small business owners struggle with the dilemma of deciding whether to buy, rent, or lease office space. If you ask business consultants or real estate brokers, you will get conflicting answers. The key point to remember is this: Each small business brings its own unique situations and concerns to the table, which means the answer will be different for each business owner.
Owning property has a number of benefits for your business, including:
- Asset appreciation. Property can be a great long-term investment, and the building and surrounding land is an asset that almost always appreciates in value.
- Fixed overhead costs. Along with payroll, a mortgage is one of the highest fixed business expenses.
- Potential to sublet. If the property is too big, you can sublet a portion of it, which can help you pay the mortgage or give you additional funds for your own cash flow.
