Renting or owning an office — pros and cons

There's usually one major question associated with corporate offices — should you move into a rented space or own your own premises? The answer is not that simple and depends on many factors. For example, does the company have plans for significant expansion? Does it have sufficient spare capital and the personnel capacity to take care of running the property? In today's article, we try to summarize the advantages and disadvantages of both options and thus hopefully facilitate your decision.

For and against renting

+Flexibility: First and foremost, renting gives a company a lot of flexibility. When size or location requirements change, it is easy to move on to more suitable premises. The company does not have to deal with the process of selling the office property or buying a new location. This advantage became fully apparent in the wake of the pandemic, when—according to the Colliers Occupier Fit-Out Guide 2026—companies began reducing their office space by an average of 40 percent compared to pre-pandemic levels. This was because hybrid work reduced the need for a permanent workspace for every employee. The flexibility of leasing and shared workspaces provided them with the right conditions to quickly adapt to the new reality during this transition.

+Greater choice: Office space rental is also suitable for companies that need to operate in premium locations. This is because buying prime real estate in sought-after zones usually requires a significant amount of capital—not to mention the fact that there are not many properties for sale in such areas. On the other hand, renting allows businesses to be based in the right location without the threat of financial ruin.

+Financial considerations: When renting, a company avoids the large financial commitment associated with buying an office building. Plus, it still has cash available to invest in business development. Lease payments are also a deductible business operating expense, so there is no need to deal with complex depreciation calculations. Furthermore, Colliers data for 2025 show that the monthly cost per workstation in modern offices in the Czech Republic ranged from 450 to 650 euros, which gives companies clear cost predictability.

+Property care: Repairs and maintenance of the property are an extra worry. However, when renting, the landlord or property manager is responsible for those processes. The tenant can concentrate fully on their business.

-Rent increases: When renting an office, it is necessary to take into account that rental costs will increase over time. However, a properly drafted contract that includes, for example, an inflation clause will ensure that rent increases are gradual and do not put too much burden on business expenditures.

-Investing in someone else's property: An argument that is often overstated when renting, especially in the Czech Republic, is the fact that one is investing in someone else's property. In this case, the counter-argument concerns the length of the return on investment. Is it shorter than 10 years? Then acquiring your own facilities may be worth considering. At the same time, however, it is necessary to take into account the fit-out—that is, the costs of interior renovation—which applies to both leasing and owning a building. According to a 2026 analysis by Colliers, costs start at around 950 euros per square meter for basic standards and climb as high as 1,850 euros per square meter in the premium segment, regardless of whether a company ultimately decides to lease or purchase its own property.

-Long-term stability: A disadvantage of renting can also be limited long-term stability. It could happen that the tenant might have to leave the premises without wanting to. In certain cases, this may even harm the tenant.

For and against ownership

+Capital appreciation: The appeal of office ownership lies in the investment of capital in the property. In the long run, if property value increases, an office can become a good investment. Owning office space also increases the value of the business, and the building can be used as collateral when applying for business loans. Vacant office space can be rented out, becoming an additional source of income.

+Tax benefits: Many of the costs associated with owning property can be deducted from corporate taxes. The depreciation period for a non-wood and non-plastic building is 30 years, allowing for a reduction in taxable net income. Tax deductions may also apply to mortgage interest, property taxes and other items.

+Control and stability: There is no need to answer to a landlord or deal with them at the time of their choosing: whether this involves interior furnishings or the building’s exterior appearance. Business partners will also associate the company with the location and have a closer relationship with the company in the long run. Having your own modern headquarters can also be a matter of prestige.

-Limited flexibility: Owning the property does not allow for significant expansion. Thus, a new or growing company may encounter insufficient capacity or other problems in the future that create unexpected needs.

-High costs and maintenance concerns: Buying commercial space will initially cost much more money than renting it. You need to consider whether the investment will jeopardize the company's business development. In addition, the property owner pays for all equipment, repairs, utilities and maintenance costs, which also adds pressure to ensure sustainability. The building owner is responsible for its energy efficiency and compliance with environmental standards. This may require additional investments in modernization, insulation or technology upgrades—whereas, in the case of a tenant, the landlord handles these matters.

-Less choice: Especially with commercial property, there is much less choice when buying than when renting. If a business needs to be based in a premium location, it may not be able to do so without renting space.

Still can't decide which option to choose? Then reach out to our Office Agency experts who will prepare an analysis of both options and advise you on which one is better for your specific circumstances.