Moving from a home office
to a Commercial Property

You have started your own business from a home office and established yourself well in your field. Profits are increasing and your team is growing. So, what’s next?

Now that you’re outgrowing your home office, and looking to move into a commercial office building, you have a lot to consider. Let’s first discuss why you should think of moving from a home office to a commercial property.

Few Tips While Looking For Commercial Property

When moving from a home office to a commercial space, there are quite a few things for you to consider. Here are just a few:

  • First and foremost, your budget. Check your finances, as renting or buying a place will be a huge investment.
  • Weigh your options while searching for the property. Do you want an entire office or a simple co-working space shall do for the initial phase?
  • Location is key. Keep commute in mind while picking a location.
  • Don’t over commit. There’s nothing wrong with taking small steps.

Once you’ve begun searching for the right space, the next thought that will get you scratching your head is whether to rent an office space or to buy it using a commercial loan.

Pros and Cons of Home Office

There are obviously many advantages to a home office. First and foremost, you don’t have to commute. You save money on gas or public transportation, and you don’t have to buy lunch. It also saves you from the stress that comes your way because of 5 o’clock rush hour. It also gives you flexibility with your work hours as well.

But along with this, there are some disadvantages too. You have added distractions like doing house chores in the middle of work hours or paying bills, etc. These distractions pile up and take away a considerable amount of time from you without you even knowing it. You may also have less collaboration and interaction with the outside world which can be a big downside.

Aside from these pros and cons, you have to consider moving to a commercial property once your team grows and it becomes difficult to manage things at a home office.

Pros and Cons of Buying Office Space

Pros –

  • Buying your own office space will give you an exact idea about the costs. The budget will be clear and fixed over a period of time. This gives you the opportunity to make future plans accordingly.
  • Owning and running an office space can help you with additional tax deductions.
  • If the office space is large enough, then you can rent the extra part. This will source as an extra income.
  • At the time of retirement, you can opt to sell the property and can gain enough profit to fund your retirement.

Cons –

  • If your business continues to grow rapidly, then your smaller office space will become inadequate. This can force you to sell the property and look for a bigger office.
  • There’s a big initial cost. You would need to spend on appraisal, maintenance, and property improvement costs along with the down payment for the commercial property.
  • If you’re leasing out any extra space, you may need to find help with tenant representation.
  • There’s always a chance the property value might drop over time.

Pros and Cons of Leasing Office Space

Pros –

  • Leasing an office space normally gives you a chance to rent something in a prime location. If your business is dependent on image and location, then leasing could be the better option for you.
  • With your money not stuck in real estate debts, you are freer to respond to opportunities coming your way.
  • Your credit scores don’t make a huge difference while leasing.
  • Freedom to move to a new location if you feel your business outgrows the space.

Cons –

  • Your costs may be variable in the long-term. Each year, the lease costs will increase. Therefore, there would be no fixed costs, and so it will be difficult to make future investment plans.
  • You won’t be building up equity, as you are funding someone else’s property and not your own.
  • You may be forced to relocate at the end of the lease regardless.


There is a flip side to everything. If you are working from home, there are a few advantages and disadvantages. The same goes for when you are shifting to a commercial office space. It has its own advantages like increased professionalism, growth potential, and more space to work. However, it also comes with a daily commute, protecting assets, and extra expenses.

Similarly, there are pros and cons to both leasing office space and owning office space. The final decision depends on the combination of personal and financial factors. So, take your time to weigh all of your options before you plan on moving from your home office to a commercial property.