As a business leader, you may have enjoyed the luxuries of working from home. However, as your business grows, the need increases for a dedicated work space elsewhere. Rented office space is likely your best solution...
Rented Office Space: Advantages and Disadvantages To Consider Before Signing A Lease
Chances are your business began life without dedicated office space. In the beginning, creating your business online with a remote workforce keeps costs down and helps you grow in the short term.
However, a separate physical mailing address can help take your business to the next level. When you're ready, it can secure investment from entrepreneurs looking for established businesses that can offer return on investment (ROI) for their money.
Here are pros and cons of rented office space for your business.
Advantages Of Rented Office Space
Reliable Base
In the post-pandemic world, most businesses are predominantly home-based or hybrid businesses that combine office work with digital workstations. But here are still advantages to commuting to an office daily. Office space for your team promotes productivity. It’s a business investment.
One of the main risk factors using digital platforms is the increase in cybercrime in recent years which can cost your business money and put it at risk. Bringing your teams into one office space decreases the list of cybersecurity requirements and helps your business to build equity for the future.
Office Branding
Regardless of whether you have office space or not, you need good branding for your business. Customers should recognize your logo right away and associate it with your brand. Many companies only have online branding, but office space gives the impression of a strong company.
Rented office space allows you to create effective offline branding. This can increase your local visibility and inspire your clients when they come to visit. Especially if you have it cleaned professionally by an office cleaning team.
It is wise to take full advantage of the opportunities afforded by the physical space. Add value to the business by using signage and local advertising.
Disadvantages Of Rented Office Space
Investment Risks
The downsides to buying office space for your business are the short-term costs and the investment risks inherent in property purchases. Running a business isn’t cheap in the short term, and a substantial financial outlay can disrupt cash flow and make it harder to establish your brand.
Additionally, there is an investment risk to buying office space. As with any property, you need to invest in it to retain and improve its market value. And there’s always a risk of diminishing returns.
One alternative is to lease the property in the short term and build up the funds to buy.
Maintenance Costs
It’s not only the cost of the rent or mortgage you should consider when you’re investing in office space for your company. Maintenance costs also need to be considered. These expenses include the cost of:
- Furniture
- Equipment
- Repairs
- General cleaning
To name just a few.
While rented office space can be an excellent way to:
- Increase productivity
- Make your business appear more professional
- Reduce the risks of cybercrime
You need to make sure you can afford it in the short term.
Final Thoughts
There are clear arguments both for and against owning office space for your business. On the one hand, it creates team cohesion and boosts productivity. On the other, it can be expensive if your business is not established.
Remember, rented office space offers advantages that offers advantages both now and building toward the future.
