Leasing vs. Buying: What commercial buyers prefer!

Commercial property is amongst the safest investment options across the globe. However, buying commercial real estate is a complex process in itself and gets confusing. From the location to the size and the amenities, when buying an office space, there is not a set standard, but you need to find what best fits your needs and budget.

The commercial real estate sector has witnessed stable growth, despite the pandemic, and this has further boosted investments in this field.

Here are a few reasons that have propelled commercial investments in the last two years:

  • Growth of the IT and ITeS sectors and increased hiring in the field
  • Economic recovery and demand for new office spaces
  • Rapid growth of co-working spaces and long-term persuasions of office space and business expansion

Despite all the positive factors – the dilemma that business owners face is whether to lease the space or buy it. Each comes with its own pros and cons.

Each business, however, has its own specific needs and demands that a commercial space needs to fulfill. Owners also need to consider if they are planning to expand in the future, employee count and the industry domain before deciding on buying or leasing.



Most businesses operate from commercial spaces- be it for factories or offices and startups. Cost is a major factor for every business, despite its size and revenue. Buying a property requires a huge upfront investment and can be an obstacle to the growth of your business. This is not the case if a business opts for leasing the space.


Reduced Responsibility:

Managing a commercial space can be quite a task- from insurance requirements to maintenance costs, and other issues, there’s a lot to take care of. Businesses might end up spending unwanted resources taking care of these tasks. When leasing a space, all these requirements are taken care of by the owner, and this in turn spares business owners a lot of time and stress and allows them to focus solely on your business.


Additional Flexibility:

Getting a loan for leasing is far easier than getting a loan to buy commercial real estate. This leasing allows businesses to choose a prime location to operate from, without having to pay a large amount.

Leasing also brings the flexibility of either renewing the lease or leaving the space, as and when the lease is up if the space doesn’t suit the business.  It simultaneously gives businesses the flexibility to renovate and design the space to reflect their business and ideas.


Tax Benefits:

Owning a business also usually means a lot of paperwork and taxes. Leasing a property allows you to skip the tedious legalities that come with buying a commercial space. Also, in certain cities globally – the entire lease amount is tax-deductible, in contrast to a mortgagee’s interest-only deduction, thus helping businesses save additional money.


No doubt, leasing vs buying has its own set of advantages and disadvantages. However, certain aspects – such as the location of the space should be compromised on- be it when investing or even leading. Having a business at a strategic location can do wonders for the growth of your business.


At Pyramid Lifestyle, we build dynamic spaces that propel you to growth and success. Pyramid Axis- Evolved office spaces strategically located at Baner, are designed to take your business to new heights. To know more about us and our spaces, visit https://www.pyramidlifestyle.com/





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