Strategy

Leasing vs Buying Office Space: Which Is Right for Your Business?

Should a growing business lease its next office or buy outright? A framework built around capital, flexibility and the company's growth horizon.

Karan Bhattacharya · Head of Office Leasing, East28 April 20266 min read

The capital allocation question

Buying an office locks up capital that could otherwise be deployed in the operating business. Leasing preserves that capital and converts it into a predictable operating expense.

When buying makes sense

Firms with stable, predictable space requirements, strong balance sheets, and a long-term view of their location are well placed to consider ownership.

When leasing makes sense

If headcount could double or halve in three years, leasing keeps optionality alive. Lease structures can also be designed with expansion rights and termination options to match growth scenarios.