We read an article recently on whether to buy or lease office space. This brought us back to one of our previous blogs, “Is it Better to Buy or Lease Commercial Real Estate?” This new article, from BisNow, highlights the factors and considerations a person should make before deciding whether leasing office space or buying office space for their company is the better option.
From our previous blog on the topic:
“Clients ask me this question quite a bit. The answer depends on many factors and it is different for each client depending upon the current market parameters and their unique circumstances.
Right now, the California commercial real estate market for retail, office and industrial properties for sale and for lease in which I specialize in is pretty hot and has been for many years. Prices for both sales and leasing have exceeded all-time highs historically in most California cities especially in Southern California where most of my transactions take place. So, when prices are high it means that it’s not a good time to buy or lease, right? Not necessarily. And what if you have a business and have to do one or the other, which one do you choose?”
BisNow’s article agrees with the consideration of the state that you’re living in:
“One factor companies should consider is the state of the office market. Conditions like vacancies and interest rates can impact the decision to buy or rent. The company’s level of flexibility in terms of timing can also be important. For example, a company that needs to move immediately would have different considerations and more pressure than a company that has time to weigh these options. Many businesses also work alongside a real estate representative who understands the company’s needs and can help make the right call. This representative works to find a location that fits the company’s needs and negotiates a reasonable deal.”
If you want to learn more about your specific situation and whether you should be leasing or buying a space, contact David Massie at DJM Commercial at 805-217-0791 or david@djmcre.com – we can help! For more details from BisNow, read the full article here.