Kolkata, 19th October, 2023: Following the experience during the Covid pandemic, Bengal witnessed a steady demand of owning office spaces. The indecision over owning one’s office space is no longer a debatable subject. One of the emerging trends being witnessed is that many corporate and family-based business houses are opting to buy their own office space. Global Commercial Real Estate Services The office report – ‘West Bengal: Leading the Eastern Growth Story’ of CBRE, one of the leading real estate consultancy firms has mentioned that Kolkata recorded the highest demand for buying office space which has hit an all-time high in recent times.
The report also suggested that Kolkata will witness office space leasing of about 1-1.2 million square feet (msf) by the end of the financial year 2023 with a supply of about 0.9-1.1 msf.
However, the decision to own or rent office space needs to be aligned with a company’s unique goals, resources, and vision for the future. Each option comes with its set of advantages and disadvantages, and the choice should reflect a detailed assessment of financial capacity, growth plans, location stability needs, and tax considerations.
“Owning office space can provide long-term stability and potential financial rewards, while for others, renting offers flexibility and lower initial costs. In many cases, businesses may find that a combination of both, starting with renting and transitioning to ownership as they grow, is the most practical approach,” B P Singh Roy, COO – Sales & Marketing of Keventer Realty said.
Highlights of owning an office property include:
- Owning allows to build equity in the property, and it can be considered an investment
- The office space owner will have more control over the property and also can customize space in accordance with their own need
- With the increase in land price, owning office space is an extremely potent investment
- If the business is not heading in the right direction, one can always rent out the place and have some stable earnings
However, the decision should be based on one’s long-term business goals, financial situation, and how the costs and benefits align with specific business needs. It’s, advisable to consult with a financial advisor or real estate expert to make an informed decision.