Why is office leasing a more flexible option nowadays?

While being a small businessman or entrepreneur all of them dream big of owning a commercial space but the fact is that nowadays even big companies opt to lease their commercial space/s. It helps to reduce the ongoing expenditures or upfront costs wherein giving the business a greater flexibility for its expansion and diversification.

Advantages of renting commercial premises:

·         Reduced risk of property rates: If one owns a commercial property he/she would earn massively if the property rates rise but if it falls one would be a great loss keeping time value of money into consideration. Whereas if one would rent a property one could shift in accordance to one’s convenience as per the business conditions like if the business is growing one could shift into a bigger and better place and if not one could shift into a smaller space a reduce the costing.

·         Leasing spaces for a specific purpose: One could not only lease a commercial office space but also other sorts of rooms for specific purpose like office meeting room, training room, conference room etc. which would help the organization to hire such places as per their specific needs and requirements as per their own duration with reduced and non –recurring costs. One could lease out property even with all facilities in the most prime cities as well like for example fully furnished office for rent in Chennai or well-equipped commercial property in Mumbai etc.

·         Reduced inevitable costs: If the property is owned the owner is bound to pay the inevitable costs such as maintenance costs, fixtures and fittings, security etc. whereas the renters would only have to pay the rent and charges like electricity, telephone, internet etc. which is well utilised by them.

·         No or low Capital Expenditure costs: To combat ageing and obsolescence one requires a constant reinvestment of capital. If the property is leased as soon as the lease term expires one could move to a new place or extend the lease term as per the agreement of both the parties involved.

·         More Capital: Since renting doesn’t flow out too much of the business’s cash flows so that could be utilised more in dire matters such as human resource, raw materials, supplies etc.

Renting, in turn, gives the business more ambidexterity to adapt to the never lasting changes in businesses. Renting allows one not to be hung up in one spot and giving it the flexibility to move nearer to the market/suppliers/competitors etc. helping in faster growth and expansion of a business.