A commercial space is of utmost importance for any business to expand it to its full potential. An office space offers the scope to establish an identity as well as set a culture. However, it can be overwhelming for businesses who are just starting out, to make a decision whether to purchase or rent a commercial property. Several factors - such as cash flow, capital as well as the growth of the company - come into play while making the decision. Both owning or renting a commercial property in New Town have their own set of benefits. In this article, we discuss them for you to make an informed decision.

Advantages of Buying

Control over the property

Buying a property gives you the ultimate ownership. Having control over the property is essential, especially if you plan to make renovations to the infrastructure or customise certain aspects of it. This facility is solely available to commercial property owners. Renting or leasing does not come with the liberty to make changes as per the requirements of the commercial space.

Appreciation over time

Purchasing a property is an investment, more than simply an expense. Buying a property in a region where the prices are going up, is likely to turn out a great investment decision for the future. The appreciation in the value may be due to the infrastructural growth in the region, social and civic amenities. It is best to make a purchase as soon as the prices start soaring, so that it does not hurt the pockets when the prices have already skyrocketed.

Saving rental money

Although owning office spaces in New Town requires considerable funding initially, they can be great opportunities for savings in the future. Companies spend a substantial amount of money on paying the rent for the commercial spaces. Further, the rent is likely to increase over time. A one-time investment, purchasing a property makes sense when a business has enough capital to finance the property.

Can be a Source of Income

When you are the property owner, you have the right to alter and use the property for any commercial usage. Leasing the commercial space to other businesses is a great way to leverage the space for an additional source of income. In fact, the loans you avail for the purchase of the property can be repaid using the money that you earn by renting the commercial space.

Advantages of Renting

Less Investment

The scope to lease a property for commercial purposes is a boon to small business owners, or businesses which have just started out. Leasing does not require investing a large amount of money as a down payment, unlike commercial property purchases. What most commercial spaces require for lease is the month’s rent as well as a security deposit. Even the two combined, the cost is much less to rent a property for commercial activities.

No Responsibility of Maintenanceg

A commercial property in New Town or elsewhere comes under the responsibility of the owner to make renovations or maintenance work. Any repair or maintenance work at a rented space is carried out by the owners and hence the tenants do not have to invest more. It is, however, essential to have this clearly mentioned in the legal documents.

No Commitment to a Location

For new businesses, the flexibility to experiment with different physical locations is essential. The businesses need to understand whether a particular location is working out. In case it is not, leasing allows businesses to shift to another location, without having to lose investment. As a result, leasing allows peace of mind to business owners.

Leasing is an Easier Alternative

At times, businesses may feel an urgent requirement of a commercial place to carry out their activities. For such circumstances, leasing is easier for companies rather than making a purchase. Buying a property involves several processes, and therefore, is a time-consuming process. On the other hand, renting is comparatively quicker, and can come into effect within 30-60 days.

Final Word

The decision to purchase or rent a commercial space depends on the business you own. Knowing the stage or growth of the business is essential to ascertain whether buying or renting will be profitable in the long run. If your business is at a nascent stage, you should consider the leasing of a commercial property. Renting office spaces in New Town offers the opportunity to set up offices at locations which would be otherwise too expensive to purchase. Abacus by PS Group offers world class office and showroom spaces in New Town. On the other hand, if your business is established and is already making good returns, owning a property is the better option.