Rent or Buy Your Space?

One of the big questions that new entrepreneurs often face is whether to rent or buy a space for their business. While owning property might sound ideal, many business owners say that renting makes more sense, especially in the beginning.

Location is everything when starting a business. In fact, choosing to rent in a prime area usually works better than owning a property in a less strategic spot. A great location can draw customers, boost visibility, and even improve your chances of success. Buying, on the other hand, often involves large expenses upfront for construction, renovations, and permits. Renting allows you to use that money to focus on running and growing the business instead.

Take Suzanne Escudero, for example. When she was planning to open her Figaro coffee shop, she searched across Quezon City, Pasig, and Makati for the perfect spot. She eventually found a newly built space on Sgt. Esguerra Street near two of the country’s biggest TV networks. That gave her a steady stream of customers—media professionals who worked odd hours and needed a reliable coffee fix.

Though she wanted to own a space eventually, her budget wouldn't allow it. Escudero thought about getting a bank loan, but she and her husband felt it was too risky at the time. Instead, they chose to rent and wait until they could afford to buy without stretching themselves too thin.

Another entrepreneur, Ces Yuzon, also decided to rent. Her business was different from Escudero's—it didn’t rely on walk-in traffic. She and her team needed a functional space for storing and managing their imported food supplement products. After looking around Metro Manila, they picked San Juan because the city offered quick business registration and lower rent prices compared to areas like Makati.

The urgency to set up operations was high because their product shipment was arriving soon. In San Juan, they were able to register their company in just three days, allowing them to open their office-warehouse quickly. Delays could have cost them a lot.

For Ces, renting was clearly the smart move. She believes business owners should test and grow their venture first before buying a property. That way, when the time is right, purchasing your business space can serve as both a long-term investment and a tax advantage. Owning your office can even feel like a milestone, a symbol that your company has made it.

Many business owners share this mindset: rent first, buy later. It gives you the flexibility to learn, adapt, and grow—without the weight of a long-term commitment before you're ready.

(via Entrepreneur Philippines)