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Types of Commercial Property Leasing Available
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Commercial Office Space Properties in Singapore 

There are many benefits available to the person who is looking to lease
office space but most of them depend on what your actual needs are. For some people, purchasing property is the best option. For some people, a lease arrangement can be ideal and actually save them quite a bit of money. To see whether or not you would be better off with a lease or purchasing commercial property, you must first understand the primary types of leases that are generally available.  

The three primary types of leases for commercial and residential properties are the long-term lease, the short-term lease and the lease-to-own variety. All three have their own, unique benefits and drawbacks. Learning what they are will help you to decide if a lease is right for you and if so, what type of lease you should be looking for.  

The Short-Term Lease 

The short-term commercial lease is generally for only a few years. The most common short-term commercial leases run three to five years but can vary depending on the contract that is negotiated. The short term lease is generally great for start-up businesses who do not have a lot of working capital but expect to grow quickly. The lease will allow the business to save a substantial amount of money in the short term. In the long term, the money that is saved can be reinvested in the business either in the form of real property or for growth and expansion. Short term leases are also ideally suited for companies that work on a limited contractual basis. Many companies are formed that run for only a certain period of time. These are especially prevalent among seasonal businesses, political campaign type businesses and any other business interests that will not be in business as an actual, licensed corporate entity for any length of time.  

The Long-Term Lease  

The long-term lease is generally going to be for a long period of time and while it may seem better to go ahead and purchase a property rather than lease, there can be many benefits especially in regards to commercial properties and for certain types of business interests. The long-term lease is ideal for businesses that want to keep overhead as low as possible. It is also great for businesses that are well established but that may require many different offices around the country or around the globe.  

Lease-To-Own 

A lease-to-own contract allows the person to lease a property for a given amount of time just like the long-term and short term leases do. The primary difference is that a portion of the money spent on the lease is generally set aside in lieu of a down payment. Again, the specifics will vary depending on the contract that is negotiated. In some rare cases, none of the money spent on the lease will be granted towards a down-payment but this depends on the contract negotiations and a good property agent should be able to get you a decent contract on any type of lease.  

Benefits of a Lease  

Most of the benefits of and reasons for getting a lease are financial in nature, though there certainly are other benefits as well. Leases generally come with many different options, and while the cost of a lease may be slightly more than that of a mortgage, there are some great savings associated with leasing property as well. One of the biggest savings comes in the form of property management. Anybody who has ever owned a large building can tell you all about the outrageously expensive upkeep and maintenance of the building. For large, commercial buildings, upkeep can eat into a budget and turn an otherwise profitable business venture into a net loss for everyone involved.  

Additionally, this allows the company to save in the Human Resources department as well. When the costs of hiring, vacations, pay-rates, taxes and other employee costs are figured in, as well as the time it takes an accountant to do all of the additional paperwork and the savings add up to a sizable amount in a hurry. Not having to hire an entire maintenance and janitorial staff alone can be a justifiable reason for many companies to consider leasing commercial properties. Leases also generally allow the business to re-negotiate a more "reasonable” rate for any extensions at the successful conclusion of a lease should more time in the building be necessary or wanted. Rather than having to shut down the entire office or plant, an extension of an existing commercial lease will allow the company to keep the doors open without any interruptions in business. Whether or not a lease is right for you will ultimately depend on your personal circumstances and what you need for your business. A professional property agent should be able to sit down with you and look at your needs and let you know exactly what is going to work best for you and for your commercial business interests.

Tags: Commercial Office Space, Properties in Singapore, Commercial Guru Singapore, Find Singapore Office Space, for Rent or Sale, Commercial Guru, Singapore Leading Commercial, Office Space Portal

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