Business is increasingly being carried out online. Nonetheless, most companies still require at least one headquarters. This could be where you base yourself along with key staff members. If you sell goods, it could be your storefront.
Generally, you have two choices when it comes to your company headquarters. You can buy a building outright or take on a commercial lease. What are some of the advantages and disadvantages of both options?
Buying a commercial property
Buying a commercial property is significant investment. If your business is successful and becomes more profitable, then the value of the building could increase. Another advantage to owning your own headquarters is that you have complete control over the building. You can make renovations when you see fit.
Nevertheless, there are no guarantees. The building could lose value, which means you take the financial hit. There may also need to be substantial repairs carried out at some point, and you’ll have to foot the bill.
Leasing a commercial property
Leasing a commercial property also has its advantages. Usually, these deals can be done quickly, which means you can move into your property almost immediately. You can also set a timeframe if you only need the building for a set period. Once the lease is up, you’ll be able to move on to another property if required.
There are also potential drawbacks to leasing a commercial property. If the building increases in value, you’re not going to see a share of this. In fact, this could mean that you are subjected to rent increases.
Whatever steps you decide to take in terms of taking on a commercial property, it’s vital that you have all of the relevant legal information. Having sound legal guidance is crucial.
