In addition to many different business issues related directly to the field of activity, business leaders also have to deal with many sensitive issues, such as the question of where their employees will work. In this matter, companies have a choice. Each option must be carefully considered before a decision is made.

Business owners have the opportunity to consider the option of buying premises, whether it be a factory, office, or store, or the opportunity to lease any of the possible options. Much depends on what field of activity you are involved in, what budget you have, what staff you have in terms of number, and much more.

Each business is an individual case, so the decision must be considered and justified. There are both supporters of one option and supporters of another option. They have both advantages and disadvantages, so every leader should consider whether to lease space for business or whether it is better to consider making a purchase.

We want to cover the positives and negatives of each option so you can decide what is best for you.

Buying space


Space ownership

If you have the opportunity to deposit all the money for your purchase right away, then you will be able to become an owner in a short time. You do not need to think about taking care of loans or borrowing a huge amount of money. Thus, you can start equipping the building, making repairs, and creating space for your needs in the shortest possible time. In addition, all decisions on any changes will be made only by you and no one will breathe down your neck.

Increase in value

Over the years, the value of your property may increase. Much depends on the surrounding factors, as well as on the state in which you will maintain your property. If you not only maintain the building but also invest in it, then you can raise its value and sell it at the right time, which will bring you income.

Finding tenants

Even if you are going to make a purchase to place your business in a new property, then you have the opportunity to rent out some space to other tenants. You can work in the same building with another business or even several. Even if there is not much free space left, you can always allocate space for a coffee shop.


Large down payment

Not everyone has the opportunity to deposit the required amount of money right away. Many people prefer to take out a loan and pay the remaining amount monthly. However, the initial payment will be large. Regardless of the total cost of the space, you should expect to pay between ten percent and forty percent.

Finding the best loan

Wanting to take out a loan for such a purpose, difficulties can begin already at the stage of a suitable offer from banks. You can spend a lot of effort before you find the option that offers the lowest interest rate. In addition, no one can give you guarantees that you will be able to find such an option at all.

Huge responsibility

Buying a space means that you will be responsible for everything that happens there. You will need to take care that your property is in perfect condition within the framework of safety. In addition, the issue of insurance will be of great importance. This, as we know, is a costly affair.

Leasing space


No down payment

To start working in the room of your choice, you do not need to bother much. You just need to negotiate the terms of the deal, sign the contract, and start moving your business. You just have to pay the required amount specified in the contract, and you will be able to get to work, without regard to other issues and worries.

Expected payments

Since you are signing a contract, you will not need to pay a different amount every month. The amount will be specified in your contract, which means it will be fixed. This way you won’t run into unexpected situations.

The right to choose

Depending on the state of your affairs, whether your business will flourish or vice versa, at any time you can make adjustments to your rental plans. If you don’t like something in one place, then you can wait until the end of the contract and move to a more acceptable space. You only need to comply with the terms of your contract, and nothing else limits you.


No additional profit

If you owned the property, then you could easily offer unused space for rent to other interested parties. This would bring you additional income. However, in the case of leasing, you will not have such an option.

Spending more than on mortgage payments

According to your agreement with the owner of the property, you will have to pay not only for the premises itself, but you will also have other expenses. Here we include insurance, taxes, maintenance, and other. Thus, when compared with mortgage payments, you will have to overpay.

Lack of flexibility

If you are going to rent a room for a long time, you will be bound hand and foot by your contract. If things get worse or better, you won’t be able to quickly make adjustments to fit your needs. In this case, you should consider the option of temporary leasing.


Both options have their advantages and disadvantages. Every business owner must properly assess their situation to make the most correct
decision. After evaluating all the factors, you can make a choice both in favor of buying commercial real estate or consider options for long-term or temporary leasing.

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