If you’re weighing the decision of whether to buy or lease office space in the Triangle, it’s important to keep cash flow, taxes, and recurring costs in mind. Property cost is another key factor. A cost comparison for the short and long term can be helpful in making such a decision. As the hybrid model combining remote and in-person work rises in popularity, office size and amenities must be carefully considered before you commit to an office space.
To make your decision a little more straightforward, here are some pros of both and leasing:
Pros of Buying Office Space
For starters, consistent mortgage payments are a huge perk of buying office space. Leasing prices may rise year after year, but with a locked-in mortgage rate, you’ll never be left wondering how much your space might cost you. If there is additional space, you can even lease it out yourself. Interest payments are tax deductible, and owning provides you the chance to build equity you can use down the line – if necessary. Owners also have the luxury of selling any time and using the profits to reinvest elsewhere.
Pros of Leasing
If you’re short on cash, leasing definitely has its benefits. There’s no need to save up for a massive down payment. Instead, you’ll be responsible only for the deposit. Some owners are even willing to convert or remodel the space to your specific requirements. In some cases, the owner may pay for utilities. Lease payments can be deducted for tax purposes, and it’s easier to leave a lease should you outgrow your space.
As you evaluate possible locations for office space, be sure to research which areas can deliver your projected ROI. Up-and-coming neighborhoods should always be considered, but be sure they’re accessible. Ideally, a commercial property should be conveniently located, highly visible, and easily accessed by employees and clientele alike. In the Triangle, many areas meet these standards.
At Insight Property Group, we can point you in direction of the best fit for your needs. Our Raleigh & Durham service areas include Wake County and surrounding areas of North Carolina. Contact us today to get started!