In your research for your ideal Hawaii office space, you may have wondered whether it’s a better option to lease or buy a property. Of course, a lot will depend on your on your company’s finances, but it’s a valid concern to have. There’s many factors involved, but here are some ideas to help you decide on whether buying or leasing office space in Hawaii is better for you.
image via Peakpx
1. Lease term
Depending on how long you plan to stay at a certain location, you need to consider whether leasing or buying makes more sense to you. For a lease term longer than 7 years, generally it is cheaper to buy the property. Anything shorter than that, and it is better to lease instead of buying as it saves you more money.
2. It is more than rent
If you decide to buy a property instead of leasing, there’s more to consider than just the money for rent/property purchase. If you decide to buy, there are upfront costs which can set you back significant amounts of money. For example, the money you need for the down payment may be better used as an investment for your company.
3. Maintenance over time
When you lease a property, over time there will be buildout and maintenance costs which are covered by the landlord. When you purchase a property, these costs are now your own responsibility. Besides the financial burden, you will also need to arrange for any repairs and buildouts on your own, and in a business where time is of the essence, you may not have any to spare for issues such as this one.
If you’re having any doubts whether it makes more sense for you to lease or buy office space in Hawaii, it’s best to talk to your broker so they can weigh out the options and help you reach the best decision. At Hawaii Commercial Real Estate, we will talk to you, crunch the numbers and see what is the best solution for your individual case and your company.
Image via MaxPixel.