Many companies may consider the office space, as just a space for the employees to function. The reality is quite different, the space has an important role to play in the office-employee dynamics. Many of the companies have realized the connection between workspace and employee’s productivity and efficiency, therefore they are devising workspace solutions! If the company is just a startup, many people prefer to rent office space as they find it much cheaper this way. As the company expands, the office space is then purchased to maximize cost effectiveness. Many companies remain on the lookout to buy cheap office space, as a sign to cement their business’s standing!
Advantages of renting Office space:
Renting the office space for the company has a lot of benefits, some of the benefits are listed below:
- Buying an office space at a premium location is not feasible. Renting is the only option in such cases. A prime location will ensure that the business gets better customers.
- There is a lot of setup costs involved. Buying an office and setting it up costs much more as opposed to renting the space and making an office. There are a lot of fixed costs that a business need not incur when renting the office space.
- If the business expands, there will be a need to hire more employees. A bigger office space would be required. The management can easily leave the space and move on to bigger one. But if the office space is owned, moving is not such an easy option.
- There is much more flexibility to the capital. When renting the office space there is no cost of mortgages or basic repairs. In case the space is owned, the biggest variable cost that is incurred is the mortgage that varies with price fluctuation.
Disadvantages of renting Office space:
When a business rents an office space for themselves, they might face a few disadvantages, some of the disadvantages are:
- If the building’s owner gets a good deal, he might be willing to sell it off on a short notice. In such case, however well set your business might be, you will have to empty the space and find a new workspace. This could have a negative impact on the business.
- There might be a sudden surge in the rent and you will be bound to pay it because you need the office space to work.