Excerpted from “Lease or Own – Why That Decision Matters When Choosing Office Space”, by Frank LaRosa
Office space is a major component of an independent financial practice’s success but is often not given much attention until acquiring it becomes an inevitable necessity. The fact is office space is a reflection of your practice and the image it projects to the world. You will be hosting prospective business partners, colleagues, and – most importantly – clients in your office space. Ensuring the atmosphere conveys success, organization, and professionalism are vital. Your office space should have a strategically dynamic atmosphere that illustrates to clients and business partners alike a growth-oriented mindset. Additionally, maximizing your office space layout for efficiency is essential as its practical implications on day-to-day operations and asset growth are undeniable.
Knowing why your office space is important to your practice success is one thing, but how to efficiently secure the office space that will allow your practice to thrive is a completely different matter. The first choice you need to make is whether to lease or buy. Buying offers financial upside in that it represents a fixed cost, serves as a tax deduction, and can provide for extra income in the form of future rental opportunity and retirement savings. The counterpoint to those benefits is that owning your office space requires a significant up-front financial investment and lacks flexibility if the needs of your practice were to grow and change in the future.