Buying vs Leasing vs Managed Office Space: Which One is Right for You?

Compare buying, leasing, and managed office spaces. Discover the best office setup for your business based on cost, flexibility, amenities, and networking opportunities.

Choosing the right office space is an important decision for any business. Whether you are a startup, a growing company, or an established enterprise, selecting between buying, leasing, or opting for a managed office space can impact your finances, flexibility, and overall work environment. Each work arrangement comes with its advantages and challenges, making it important to evaluate which one suits your business needs best. Read on to learn the key differences between buying, leasing, and using a managed office space to help you make an informed decision.

Cost and Flexibility

Buying:

Buying an office space might be a good option for large organizations. Here, unlike renting, there are fewer restrictions on remodelling, upgrading or decorating the space. On the other hand, the owners are responsible for the property maintenance, with an investment of time and money. They also need to pay taxes on the property.

Leasing:

Leasing an office space means that a long-term agreement is put in place. This type of arrangement is typically expensive due to the cost of rent and furnishing. However, leasing is a stable option for businesses as it offers flexibility for businesses to expand.

Managed office space:

A managed space is one of the most flexible options that allows businesses to pay on a monthly/daily basis. Since a managed office space provides a fully functional office with all the basic services and amenities, the need for up-front costs gets eliminated.

Collaboration & Networking

Buying:

The chances of collaboration & networking with this option are low. However, employees within the organization can always connect and gain insights from their colleagues’ experiences and learnings.

Leasing:

Leasing an office space creates a separate space for businesses, keeping it out of the mix. You don't get many opportunities to collaborate with other companies but you gain privacy and independence.

Managed office space:

If the managed office is part of a coworking space, you have ample opportunities to network with other businesses. You can also collaborate with people from different companies, share your interests and make prospective business connections.

Also read: How flexible workspaces can meet the demands of today and tomorrow

Amenities

Buying:

Being the owner of the office space allows you to decide what amenities you want to provide to your employees. Moreover, you have to bear the full cost of all the amenities and even maintain it from time to time.

Leasing:

Like buying, renting an office gives you the freedom to organise furniture, decor, coffee machines and desk placements in the workspace at an additional cost apart from the rent.

Managed office space:

Such office spaces provide all the amenities required in a workplace which is included in the cost of membership. You don't have to worry about maintaining the office space or any amenities.

Professional image

Buying:

Owning an office space creates a solid image of the business as it shows that the company is here to stay for a long time.

Leasing:

Renting a dedicated office space at a prime location can boost your business's image. It gives you a fixed space where you can host events and meetings for business partners and clients.

Managed office space:

Here you get access to meeting rooms and open spaces to attend to your clients and partners. A managed office provides a professional address, conference spaces, and reception services for your company without any additional expense.

Also read: How to find the right flexible working space for you and your team

Conclusion

The right office space depends on your company’s goals, budget, and future growth plans. Carefully weigh your priorities and business needs before making a decision. Now, if you are looking for flexible office spaces, WeWork has the perfect solution for you! Whether you need a quiet desk for yourself, a meeting room for your team, or a fully functional office, WeWork offers beautifully designed spaces to match your needs.

FAQs

1. What makes a good office space?

A good office space has well-designed work areas with proper furniture and basic facilities. When employees get a comfortable workspace with amenities, it helps boost their morale and productivity.

2. Should you buy or rent an office space?

Buying an office space includes fixed costs and long-term savings. On the other hand, renting an office space offers more flexibility in upsizing and downsizing, and at the same time eliminates upfront costs.

3. What is the difference between leasing and coworking?

When you get an office space on lease, you sign a long-term contract where the company rents a space for a fixed period. At a coworking space, the arrangements are quite flexible and businesses can book a place for a month or even for a single day.