Many small business owners have often considered buying a commercial space instead of handing over rent to a landlord. The problem is that the idea may sound wonderful, but what about the hidden costs of owning your office space?

Yes, there are some positives to owning your office space, such as giving your small business stability and adding a sense of certainty. As the owner, you know that you will not encounter an unpredictable rent hike or be forced out at the end of a lease. With the proper planning, you will know in advance how much your monthly costs will be, long in advance.

As the owner of your office space, you alone decide what type of office culture and set-up your business will have. For example, you get to choose an open concept, cubicles or even where the walls for individual offices should be. This sounds like a great strategy and can be a real advantage to owning as opposed to renting. However, owning office space can be great for some small businesses, but a problem for others.

For some small businesses, owning can be less expensive than than the cost of renting. Real estate can be a great investment for you as the owner of the business. With the right investment made at high-profile, up-and-coming locations, you could watch the value of that investment grow over time.

The time to buy is when interest rates are low, because instead of renting you could be gaining equity! Depending on the terms and equity required, investing in an office may be a great option. This is especially true if you are able to purchase a building that offers additional rentable space to other businesses to increase the return on your investment.

But owning an office, or any real estate, can also be a distraction. So if you have concerns such as roof repairs and taxes, you will be taking your attention away from your primary business objectives. You have to consider if you can you afford the time away from your core business duties.

Besides the time you need to take care of owner ship of your office space, what else are you losing out on? If you must deal with all your office ownership headaches, how is your business going to grow? May may insist that they have competent staff who will take care of the business while they are designing and renovating an office that they own. But are you going to trust your employees to build growth while you are distracted setting up your newly owned office space?

If you buy an office space in a commercial area, besides the mortgage there are other things to consider. You will be directly paying for things that, as a renter, you did not have to worry about before – including property taxes, common-area maintenance fees and insurance. Even if you buy a small office, the extra costs can accumulate to several hundred dollars more per month.

You also have to consider that real estate markets can be very volatile, which means your large investment (and source of equity) is potentially at risk. You have to decide if your small business can afford the surprises that could devalue your office investment. Other unexpected “surprises” of office ownership could also be keeping up with repairs and maintenance. You have to think if your core business could handle the financial hit of a problem that affected your office space.

Another hidden cost of owning rather than renting your office space is the capital that is tied up in the space that might be needed for business expansion. Not just the financial capital, but also your credit availability is affected – not only your small business credit, but also your personal credit rating. Remember that your personal credit score will be considered for, and impacted by, any mortgage loan you take out for your small business. Even owning limited liability companies can effect your personal credit score.

Also, do not forget the professional costs involved in owning your office space. One of the first steps before deciding to purchase office space as opposed to renting office space, is to talk to your accountant. He or she will likely ask you if you can afford to purchase rather than rent. It will, in the end, be your decision. If your accountant thinks it will be a sound idea, then you need will need to pay a lawyer to help you navigate through the rest of the process – and these professional legal charges are not going to be cheap.

Renting office space at a serviced office space can save your small business money; but it can can also save you the headaches associated with buying office space. You need to focus on the primary goals and core activities that make your business successful. Buying an office space can be a distraction that does not help your small business grow.

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18 King Street East Suite 1400
Toronto, Ontario
M5C 1C4 Canada
416-574-1112

18 King Street East Suite 1400
Toronto, Ontario
Canada M5C 1C4
416-574-1112

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We are by far the most experienced and best coworking team in the market – established in 1980

We are the highest Tech centre in the market

We have a very modern, high quality, brand new facility located at:

18 King Street East, Suite 1400

Toronto, Ontario M5C 1C4 Canada

- 18 King Street East is a boutique Class A building – East of Yonge: easy street parking, less traffic, excellent restaurants and lovely parks – St. James Park @ Church & King and Berczy Park @ Wellington East, Scott and Front Streets – Very high energy and engaging area
- A few steps (a few seconds) to the Yonge Street subway/underground PATH network and streetcar available outside building
- Building is located in Toronto's vibrant financial district
- Plenty of parking available in the area including street parking and reserved parking in the 18 King building
- Adjacent to the building huge outdoor food courtyard - Beer Bistro www.beerbistro.com and Craft Beer Market www.craftbeermamrket.ca restaurants and bars with onsite catering services
- Onsite amenities: Tim Horton's, Beer Bistro, Convenience store and Starbucks across the street
- Nearby amenities: underground PATH network, numerous restaurants, banking, Starbucks plus a wide array of nearby shops and services
- New modernized office layout fully furnished with meeting spaces and training rooms plus café lounge area
- We are leaders in the service of training/meeting rooms with full conference facilities, high quality hot and cold catering
- Largest training room and conference facilities accommodate up to 60 people classroom style
- Ultra-high-speed - 1 GIG pipe = 1,000 x 1000 fiber-optic network, which will deliver internet connection speeds faster than most North American services
- Private shower room
- Indoor Reserved Parking at the current building rental rate
- Bicycle parking
- Rent a space to accommodate your team for meetings, training sessions, corporate events or coworking space or flexible office space for one day, one week, one month or one year, or whatever term suits your business
- Telsec has over 650 locations in 40 different countries worldwide available for their clients. Office clients receive up to 8 hours of meeting space per month at no charge at any ABCN member location. Plus, Office and Virtual Office clients may rent a space from any member location at special member rates which varies depending on the location
- King Edward Hotel is located across the street - recently completed a $40 million renovation and boutique hotels close by within walking distance

Dining and entertainment at high quality restaurants only minutes away – Carisma, Terroni, Woods Restaurant & Bar and Michelin Rated - Restaurant 20 Victoria. Plus numerous lunch and takeout eateries nearby

Please check out our 70 second video on our home page or click here:

Take a look at our facilities www.telsec.net

Telsec will Customize Your Client’s Office(s) Layout to Meet Their Requirements.

You are welcome to drop-in any-time, a quick call would be appreciated to ensure our availability Vanessa 416-574-1112 or Josie 416-606-4349 or e-mail josie@telsec.net.

The Hidden Costs of Owning Your Office Space

Looking to Learn More?

How to Create a Successful Seminar

Team Space: Who can Benefit From it and Why!

The Hidden Costs of Owning Your Office Space

Looking to Learn More?

How to Create a Successful Seminar

Team Space: Who can Benefit From it and Why!

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