An office space should be well-designed, functional and prominently located. Missing any of these attributes can cost you in terms of productivity or profitability. So if you are searching for a modern and thoughtfully designed office space in Toronto and can’t decide between renting or buying then this post might be of great help.
Pros and cons of leasing an office space
Leasing is the obvious choice for those who can’t afford a big upfront cost. If you don’t have sufficient funds, you would obviously consider leasing a space. Although, in long term leasing is more expensive than buying. When the lease expires or annual rent increases, the added expense can affect your sales and profitability targets.
Pros and cons of buying an office space
Increasing lease amount is considered a variable cost for business. Thus, buying is a great option if you are comfortable with spending a lump sum amount and paying a fixed cost for a long term mortgage loan. You can also enjoy tax benefits while paying mortgage interest. Owning a space also offers a steady cash flow in the form of rental income. Although, buying an office is a huge investment which is not affordable to everyone. Besides, moving out of a leased property is much easier and more flexible compared to a purchased property.
Final verdict
Both the options have their own pros and cons. For small scale businesses, the huge upfront cost is a big hurdle in buying a property, but the combined benefits of tax deduction and fixed costs also make it a beneficial option. Plan your finances to make an informed decision. In the meanwhile, you can get estimates for buying or leasing office space in Toronto from Dunpar Homes. They specialize in luxury construction for residential and commercial properties.
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