Buying a building with land and planning permission to extend allows you to build additional office space as your business grows. You’ll be committed for the long term, and you’ll need to keep paying rent even if business is slow or you wind up your company, leaving you liable for additional costs.Ĭity centre offices are generally rental only, but you may be able to buy premises in more rural or suburban locations.Expect rents to increase unless you sign a long-term contract, and you may face having to find new offices if rental increases are too high. Competition is tough, especially for prime locations.You may need to reinstate the office to its original condition and layout when the lease ends. There will be restrictions on what you can do with the office space and changes will require the landlord’s consent.There’s less work – make sure your lease ensures the landlord or letting agent is responsible for maintenance, and be clear what services are included.Renting gives you flexibility, allowing you to expand quickly into further office space if it’s available, and in prime locations renting is often the only option compared to buying a leasehold or freehold on a property.Rental can be deducted as a business tax, meaning you’ll pay less Corporation Tax in revenue. Renting additional office space is cheaper – normally a deposit and monthly payments that you can budget for.These can be rented for shorter periods of time but are often more expensive than conventional leases. Flexible leases include furniture and maintenance. You’ll need to equip the office with furniture, and pay insurance and maintenance.
Conventional leases allow you to utilise the office space how you want to, with charges based on price per square foot.
There are two ways to lease office space. Renting or leasing additional office space is usually the best option for small businesses that have limited resources to spend on capital investments such as property assets. Could alternatives such as flexible working, hot desking or remote working ease the pressure on your existing office space? Investing in laptops rather than bulky desktop PCs, decluttering and buying smarter storage can be cheaper alternatives until you absolutely need to expand floor space.
Peter wants to buy office space for his new business how to#
You may need to look for new office space, rent extra floor space or buy additional space such as expanding a workshop or extending an office.įind out how to get finace for your business from Start Up Loans >īut before you sign a lease or look to purchase additional or new office space, take time to carefully assess your needs. Growing your start-up often involves taking on new employees but it can be a challenge to find space for these new additions in your existing offices. Read our guide to renting or buying office space so you can choose the best solution for your business.Įxpanding your small business is an exciting but challenging prospect. As your business start-up grows, you may need to either buy or rent more office space.
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