Will Dixon, REALTOR® - THE OFFICE AROUND THE CORNER: A LEASING GUIDE

Lack of Property Control

You are almost always at the whim of your landlord. The space around you can fluctuate and so can the upgrades, made or not made. Usually, the repairs and maintenance are up to the landlord, so they may not be done as fast as you would have liked. There’s also the aspect of lease termination. The lease could state that it can be terminated if a certain amount of space is empty in the entire building. You don’t have any say over these aspects, as opposed to owning your building, when you do.

Varying Monthly Payments

There are a few different situations that could bring this about. The first happens if you pay your property taxes or utilities. They will rise and fall. Another scenario is if there are rent escalations per year in your lease. Plus, once your lease ends the new rate on it may rise if you wish to release your company from it. This is not a factor when you own your building.

PROS OF LEASING

Leasing in Top Areas is Easier than Buying

Leasing in the Central Business District where the best surrounding amenities are is much easier than buying there. This goes a long way to attracting top talent. Many of these buildings are high-rises with dozens of dozens of tenants, so owning in the area is often out of the question. If you search to own your office, it may take you away from looking into some of the nicest and most sought after areas in your city.