Buying vs. Leasing Office Space
The decision of whether to buy or lease your next office space in Cleveland, Ohio involves several factors, including cash flow, recurring costs and taxes. Property cost is also key when making the decision.
It is recommended to do a cost comparison for the short and long term when choosing a new location for office space. According to Commercial Property Executive, many professionals agree that moving forward, office staff will prefer a hybrid model combining remote and in-person work. For this reason, office size and amenities should be thoroughly considered before selecting office space.
To make your decision easier, here are some pros of both buying and leasing for your consideration:
Pros of Buying
- Mortgage payments will remain consistent versus leasing.
- If there is additional space, it can be leased out to generate more revenue.
- Interest payments are tax-deductible.
- Owning provides the opportunity to build equity that can be used later on if necessary.
- As an owner, you can sell at any time and utilize the profits to reinvest in another commercial office space or towards retirement.
Pros of Leasing
- When renting office space in Cleveland, you don’t need a down payment. You only need a deposit.
- Some owners will convert or remodel the space based on the tenant’s requirements.
- The owner may pay for some or all of the utilities.
- Lease payments can be deducted for tax purposes.
- It’s easier to leave if you outgrow the space.
When evaluating a location for office space, thoroughly research what areas will deliver the projected return on investment. Take into consideration up-and-coming neighborhoods or those that are disconnected from major highways and areas of transportation.
A commercial property should be located in a convenient area that’s visible and accessible to clientele and staff alike. In Cleveland, numerous parts of town will support an organization’s growth and development and are suitable for commercial properties. For example, our city features many prominent corporations and higher educational facilities, ensuring no shortage of potential traffic.
Downtown Cleveland is well-liked because of its many attractions. The Warehouse District got its name for being the center of industry decades ago. It’s also one of the city’s original residential neighborhoods. Many of those warehouses have been converted into office and residential spaces. Parma offers accessible parking with a scenic suburban feel. Solon is another Northeast Ohio suburb that consistently makes numerous “best of” lists, including the best places to live and work and many investors and business owners will find first-rate office space here. Finally, Beachwood is a thriving city home to a few premier shopping destinations and notable restaurants. It already houses a variety of tech and medical businesses.
All growing businesses face the question of buying versus renting office space in the Greater Cleveland area. At CRESCO Real Estate, we can assist when purchasing or leasing a commercial property for your business. If you have further questions, feel free to reach out to one of our knowledgeable specialists at any time. We are excited to help!
To learn more about how CRESCO, Greater Cleveland’s leading commercial real estate company, can help you with your property needs, contact us at 216.520.1200, or fill out the form below. A CRESCO professional will contact you shortly.