Buy vs. lease office space in Toronto – Things to consider
If your Toronto business is expanding or you are an owner of a start-up company you definitely need to begin your search for a new office space. Your demands can vary, same as your preferences, but at a certain point, you’ll definitely meet the buy vs. lease office space in Toronto dilemma. The decision is difficult to make, and it depends on many factors you need to consider. And, although both of the given options have their pros and cons, here are the things you should never miss out on thinking about along the way.
Buy vs. lease office space in Toronto
The current situation your business is in will tell you the way
Every serious business person knows that Toronto has one of the best commercial real estate markets in Canada. Thus, it is not strange at all that people see this city as a fruitful ground for their business development. However, buying office space is a serious investment. It is only worth it if the business you are owning is stable on all grounds. Thus, for example, if you see any tendencies toward downsizing or even rapid growth, buying an office space is not the best option. While downsizing definitely indicates the business may need to undergo changes, or is going through some financial issues, the rapid growth leads to the inevitable space expansion. In both cases, leasing till the things get more certain seems like the best option.
Landlords and issues they bring
If you are not an owner of the office space, you need to comply with the terms your landlord sets. In most cases that should not be a problem. However, if your business requires certain space adaptations and changes to the existing look, then it may cause some issues. Some landlords are really strict, and would not allow any changes.
On the other hand, if the office space suits your needs and you would like to stay there long-term leasing it can never be your safe ground. In fact, any landlord keeps the right to decline to renew further leasing, and all you can do is start searching for new space as soon as possible. In this case, owning commercial real estate will save you from such uncomfortable experiences. This is especially true if you really like the location of the office space you are in. You definitely would not like to find yourself in the situation to lose it permanently. In this case, buying is a better option. And, when it comes to moving in and all the relocation issues, pros can ensure success. You should know that Toronto movers are among the best in the area.
Then, there comes another issue in solving the buy vs. lease office space in Toronto dilemma – the financial point. Namely, for the office space purchase, you’ll need to make sure your business bank account can afford such a thing. Most people take loans, and that means financial stability and a reliable resource that can support the undertaking. The whole thing requires some serious calculations and detailed thinking. What’s more, once you become the owner of the property, you’ll need to take care of the taxes, insurance, and maintenance costs. Not to mention the repairs that you’ll come across every now and then. The investment is great and it’s really worth it, but you should take it seriously. Making a good financial plan will help. Calculate all the monthly expenses, and don’t forget to add some more for the initial month to cover moving costs and some potential space adaptations.
On the other hand, choosing the lease option doesn’t require some big upfront capital. All you need to ensure is to cover the monthly rent. Plus, having a landlord means you don’t have to take care of the repairs.
Buying actually means you’ll get your own property and you’ll build wealth
If you have a tendency of getting yourself a new property, and you really like the office space in question, then purchase is the option for you. It is widely known that there is no better way to invest money than in real estate. And no matter whether you are going to use it for your business only, or you are going to rent it, it really pays off. You don’t have to care about renewing the lease and dealing with a landlord, and you can realize all your remodeling ideas without asking for permission. What’s more, if you decide to buy office space, once when Professional Movers Canada relocates your belongings to your own commercial real estate, you know there will probably be no such relocations for a long time.
Leasing, on the other hand, is something completely different. All the money you give to your landlords ensures only one more month in their office space. And, if your business requires some upgrades to that real estate, you should be especially careful. Not only all such upgrade investments are usually non-refundable, but some landlords may require you to return the space in its original condition once when you decide to leave.
Sometimes it is easier to find a place to lease than to buy
If you are ready to become an owner and buy commercial real estate, then we can suppose you have already found the one you would like to purchase. However, if all of that is based only upon an idea, then it may be a problem. In most cases, it is much easier to find an office for rent than for purchase. And, although getting the “to buy” option is not impossible, it requires much more effort and searching time than the “to rent” one.
It is never easy to make great business decisions. But if “buy vs. lease office space in Toronto” is your problem this article may have helped you make up your mind. Good luck and play it smart.