Office-Space-for-rent-lesli

It might sound trite but why is it that the majority of office is for rent as opposed to sale?

The answer of course is obvious - it is far more cost effective to spend money when office space
is for rent as opposed to investing the capital to actually purchase office space.

When it comes to managing your own business cash is king and maximising the return on
capital, in other words money, is best served by re-investing it your business rather than on
investing in assets that are not part of your core competency.

Office space for rent, as opposed to office space for sale is usually your best option in terms of
maximising the return on your business. Office space for rent also ensures flexibility in terms of
your office space needs. When you purchase office space whether or not you can afford to move
into office space for rent often depends on your ability to sell your office space and the
prevailing market conditions at the time of sale.

It is interesting to see how over a period of time large organisations like banks and the
government who historically owned a lot of office space and who used to occupy their own
office space prefer to utilise office space for rent. The government, banks and other large
property owning institutions have progressively over time sold their office spaces and have
instead rented their premises often on a sale and lease back type arrangement simply because it
is far more capital efficient for them to do this and it has been a very effective means for them to
maximise their return of investment because they realise they can make more money by leasing
office space for rent as opposed to occupying office space they own.

Who would have thought that office space for rent is an efficient way to maximise the flexibility
of your businesses' office space needs and maximising your return on investment!