Whether to rent or buy office space is inevitable for any growing business, but it isn’t always clear-cut for most business owners in Tampa. The decision hinges on a combination of economic, tax, and personal issues, which you need to weigh carefully with a clear understanding of the pros and cons of each avenue. Keep reading for more information that’ll help you make an informed conclusion.
What Does It Mean to Rent vs Buy Commercial Property?
Renting an office space in Tampa means leasing it from the owner for a defined period, whereby your ownership status is a tenant. On the other hand, purchasing entails acquiring the space from a seller with either cash or loan proceeds. So, what option is more beneficial to you?
Renting Office Space in Tampa
Here are the advantages and disadvantages of renting office space in Tampa.
Pros
- Renting office space offers maximum flexibility since you aren’t tied to the space for longer than your lease period. If your business expands or market conditions sway like it often happens in Tampa, you won’t be tied to anything long-term.
- Renting requires the least property maintenance; much of such responsibilities belong to the landlord.
- Commercial space renting may allow you to establish your business in a desirable and high-image site that couldn’t be otherwise affordable.
- If you have a part-time practice, you can share-cost the space with other interested practitioners.
- When renting, your money isn’t tied up in real estate, so your business can freely respond to emerging opportunities in the market.
- Since space ownership in Tampa may come with some headaches, leasing has become a more accessible option that allows you to focus on running your business only.
Cons
- As a renter, you’re subject to rent increases over time, and you may have to deal with difficult landlords.
- You don’t build equity in the rented property.
Buying office space in Tampa
Here are the advantages and disadvantages of buying office space in Tampa.
Pros
- As opposed to renting, there are fewer or no restrictions on upgrading your office space.
- The supplementary costs of owning a commercial space can offer tax deductions in mortgage interest or property taxes.
- Owning your commercial space can offer the benefit of renting out unused space and making additional income.
- By owning viable office space, you’re assured of retirement savings.
Cons
- Buying an office space denies you flexibility. If your business continues growing or changes in the future, your owned office space may become a hindrance.
- Purchasing commercial space will cost far more upfront. There’s a property, appraisal, maintenance, and improvement cost, alongside substantial down payments.
- You’ll have to pay taxes on the commercial property.
Final Verdict and Solution
Having seen what it takes to rent vs buy commercial property, it’s now easier to sign on the dotted line and ensure your resolution fits your goals.
Regarding office space in Tampa, renting appears a better option for most business owners. This is especially in consideration of all the upfront requirements and fluctuations of a growing population, plus construction loans for office buildings, condominiums, and industrial buildings are much more challenging to come by than they were a few years ago.
If you’re looking to rent a clean, full-featured office space with anything you ever need, get in touch via email or call the Johnson Foundation of Florida at (813) 324-1824. With our four locations across Florida, you’re bound to find a perfect executive suite on a site that works best for you.
