Benefits of Leasing Business Space

Leasing Business Space

There are many benefits to leasing business space. For one, it is a lot easier to move locations than if you owned the property.

It is also a good choice for start-ups or businesses that have yet to be ready to take on the financial burden of owning a building. Additionally, taxes are a lot less when you lease versus buy.


Businesses require flexibility in their commercial real estate leases, mainly as they grow and change. The flexibility that leasing offers can save companies money and time. Leasing also allows a company to focus on its business and leave issues like maintenance, management, and other concerns to the property owner.

In addition to flexible leases, flex spaces can have advanced infrastructure to reduce the preparation cost and allow tenants to move in quickly. Moreover, a flexible space can be shared by multiple companies, increasing networking opportunities for the tenant.

The demand for flexible commercial property increased long before the COVID-19 pandemic, but it accelerated and influenced corporate decisions to choose more flexible office space. It also nudged landlords and tenants to prioritize having more flexible leasing options. For example, some of the most popular features favored by tenants include more room to scale up or down, shorter lease terms, and more remarkable ability to sublease space.

Less Upfront Costs

The decision to avail a business space for lease Overland Park, KS, is a huge one for any business owner. The right choice depends on your current business and finances and where you want to take your company.

Typically, leasing involves less upfront capital than purchasing commercial real estate does. This leaves you with more funds to invest in other business areas. This may be especially beneficial for small or established companies looking to change operations or scale.

Another significant benefit of leasing is the lower maintenance costs associated with it. Depending on your lease agreement, landlords assume responsibility for most maintenance issues, freeing you up to focus on running and growing your business. In addition, most leasing contracts offer the flexibility to sublease unused space without the landlord’s approval, which is not always available in purchasing agreements. The right commercial mortgage brokerage in Calgary can help you weigh the pros and cons of each option.

Tax Benefits

Leasing business space lets you focus on your company’s operations and growth. The money you save on not investing in a property can be spent on other expenses, such as inventory, equipment, and payroll.

Typically, all or part of your lease payment is tax-deductible as a business expense. In comparison, when you buy a building, your mortgage interest is only partially tax deductible.

When you rent a building, your company doesn’t have the added cost of securing and maintaining a commercial real estate insurance policy. Depending on the terms of your lease agreement, this could save you money in the long run.

When you own a property, any improvements you make to the building remain with the property if you decide to sell it later. In contrast, if you rent a building, any modifications your company makes to the property stay with the building when the lease expires. This may be a minor deal for businesses that plan to remain at the exact location, but it can be an essential consideration for those who want to grow into a new space.


The landlord typically handles many of the costs of leasing space, making budgeting easier. Leases also usually include a fixed monthly payment, which can help business teams plan and manage cash flow more effectively.

Some business owners lease to keep their cash reserves available for other purposes. The down payment required to purchase commercial property can significantly reduce your available funds. Additionally, the upkeep costs and taxes associated with owning a building can strain your cash reserves.

Purchasing a business can have significant financial benefits, including using mortgage rates that are more economical than rent. However, companies that enjoy continued growth may find it more cost-effective to lease space in the short term.