Commercial Real Estate: Buying or Renting Office Space?

Renting Office Space – A Flexible and Accessible Solution

Renting office space is often the best option for start-ups and young companies that prefer to keep their cash flow available for growth.
It’s also the most flexible and cost-efficient way to launch or expand your business premises.

There are several types of professional leases available:

• The commercial lease (3/6/9), the most common,

• The professional lease, for independent professionals,

• And the short-term “derogatory” lease, offering maximum flexibility.

However, renting comes with limitations: rents may increase unpredictably, and monthly payments do not contribute to building real estate assets for the company.

Buying Office Space – Long-Term Stability and Value Creation

For well-established companies with financial stability, buying office space offers security and long-term control over property costs.
Even without significant upfront capital, businesses can access attractive fixed-rate loans, ensuring predictable expenses over time.

The benefits of purchasing office space include:

• Protection from rising rental costs,

• The ability to depreciate the property over several years,

• And tax advantages through deductible expenses.

The commercial real estate market in Greater Paris remains strong — with office prices up by around 2% in one year, now averaging over €6,000 per square meter.
When resold, these assets often generate significant capital gains, adding long-term value to a company’s portfolio.

The Hybrid Option – Buying Through an SCI and Renting to Your Company

Some business owners choose to create a Société Civile Immobilière (SCI) to purchase their office property and lease it back to their company.
This hybrid approach combines the advantages of ownership and rental, allowing you to:

• Build real estate wealth,

• While maintaining control over lease terms and reducing tenancy risks.

It’s an optimal solution for entrepreneurs seeking both financial performance and asset stability.