Kuester CRE Offers Guidelines for Leasing or Purchasing Startup Office Space

In a new statement to the press, Kuester CRE walks entrepreneurs through the pros and cons of leasing office space versus purchasing it.

When launching a new business, one of the preliminary choices is where the company will be located. Stories of garage- and basement-based startups are common, but eventually, every company needs a dedicated space for its employees and its customers. Here, startups have a couple of basic options—renting office space, or purchasing it outright. Kuester CRE has issued a new statement to the press, weighing in on this important decision.

“One of the first things to consider is your own financial readiness,” says Shaw Kuester, President of Kuester CRE. “If you buy an office space, you’ll typically need to make a significant down payment, potentially 25 percent of the total real estate price. If your company doesn’t have that kind of cash on hand, then purchasing a space is probably not going to be an option.”

That’s not to say that leasing is always the better option. “Purchasing an office space is definitely a long-term decision—and if you both have the resources and feel confident you can prosper in this location, then making the down payment can be a smart move, Kuester notes. “Otherwise, there’s leasing.”

Another consideration is flexibility. Companies that lease their office space will generally be able to renegotiate their lease terms on an annual basis—or, to seek a different location as their business grows.

“That flexibility can be valuable to young businesses—but what’s the flipside?” asks Kuester. “The flipside is that, when you buy, you’re building equity in your office space, which can become a valuable asset in itself—and in fact, it can even be used as collateral if you need to expand at a later date.”

One more factor to consider is that, when leasing office space, there’s a landlord on call who can help deal with maintenance issues. “When you purchase office space, you’re the landlord, and you’re in charge of those things,” says Kuester. “But you can also rent out part of your space to make some additional income.”

Ultimately, there is much to consider—and one of the best ways to proceed is by working with a skilled commercial real estate broker, like Kuester CRE.

For additional information about Kuester CRE and its commercial real estate services throughout the Carolinas, visit www.kuestercommercial.com.


Kuester CRE boasts more than 45 years of experience in commercial real estate, plus a reputation of trust and integrity throughout the Carolinas. The company focuses on brokering and leasing retail, office, medical, land, and flex property, as well as managing commercial buildings, apartments, and student housing. Kuester CRE delivers customized solutions for landlords, tenants, and investors at every stage of the commercial real estate process. With the unique ability to cover the Western Carolinas, Piedmont, and Eastern Carolinas, Kuester offers the responsiveness of a local presence with the resources of a larger regional firm.

To learn more about Kuester CRE, visit www.kuestercommercial.com.

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Company Name: Kuester Commercial Real Estate
Contact Person: Shaw Kuester
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Phone: 855-723-2500
Country: United States
Website: www.kuestercommercial.com