a lease, one that doesn’t exist here.
However, empty space can be rented out and grown into later. It makes sense for a company with a solid growth plan to pursue that.
Increased Liability
As opposed to leasing, when you own you are responsible for the health and safety of everyone inside the building, even more so if you end up leasing space inside to other tenants as well. In that case, you would also have a set of legal and insurance obligations to them that you need to fulfill. You also now have to take care of the building’s maintenance needs and repairs. That’s more responsibility and liabilities on your plate as well. It can be tough managing that in a timely manner and completing your day-to-day responsibilities.
PROS OF LEASING
Less Capital Tied Up
Your company has more expenses. When you lease, you only pay a portion of what is due upfront compared to buying. The upfront costs are only your security deposit, attorney fees, and any other fees or months of rent you have to pay.
Flexibility
Not only does your capital have shorter terms, depending on the landlord, but tenants could have even more flexibility. Most situations aren’t like this but if the landlord owns a large property the tenant can have options to upsize or downsize with the right of first refusal.
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