Do you need office space for your business? If the answer is yes, you’ll need to consider whether to buy or rent.
Understandably, both have their benefits as well as drawbacks. For instance, buying a property gives you stable costs and possible extra income streams from renting out unused space. However, there may be circumstances where you will need to sell, which can result in other challenges.
On the other hand, office rentals tend to offer more flexibility in the short term. If your business is new, it makes more sense to rent office space in McAllen.
When it comes to buying or renting office space, we’d like to share a few things to consider.
Buying a Physical Office Space
Buying physical office space has a few important benefits and drawbacks that you’ll need to consider carefully while you are deciding. Be aware that a commercial mortgage will tie up a lot of resources that could potentially be used elsewhere for your business.
Purchasing office space is great if you want to stay in one location for multiple years. You can also customize the space to fit your needs without needing to ask your landlord.
Even if you buy a space that is too large, you can rent out unused space to create another stream of revenue. If your business is stable and tied to one area, buying an office may be the best choice for you. For instance, many law firms prefer to stay in one area for consistency with clients, so consider what your business needs are over the long term.
The biggest drawback to purchasing an office space tends to be the financial cost. You’ll need to put down a large down payment and pay mortgage over the course of many years. Depending on the location, this may be more than you can afford. You also risk losing money if your property doesn’t appreciate in value. Costs like maintenance can also eat into your funds.
Rental offices are often preferred by smaller companies and startups. This option can be better if you aren’t sure exactly what you need just yet.
The biggest benefit of renting comes down to flexibility. If you decide the rental office isn’t right for your business, you can just choose a new one when your lease is up. You also don’t need to pay for most maintenance.
Depending on the current economy, you may also be able to afford rent at a location in a more desirable area. It’s always worth checking into prices when deciding whether to rent an office in McAllen.
The drawbacks mainly deal with having a landlord. You can’t make the space your own or be assured that you will have it for years to come. The price can also fluctuate as local rent changes. This can mean you’ll pay more over the years even if you’re in the same location for a long time.
Find Your Perfect Rental Office
If you need to rent an office in McAllen, Cobalt Executive Suites may be just the place for your business. We offer flexible spaces so you can pick exactly what your business needs. We also offer security, 24/7 access, janitorial services, and a variety of other amenities.
Check out what we have available and learn why our office rentals are a solid choice for your business.