Many entrepreneurs see office ownership as a sign that the business has arrived. Ownership can certainly create long-term value, but after more than 25 years in business and real estate, I do not believe it should be treated as the automatic next step.
The first responsibility of a growing company is to protect its ability to operate, adapt and expand. In many situations, leasing serves that responsibility better than purchasing.
Capital should strengthen the business
Buying commercial space requires much more than the purchase price. Registration, finance, fit-out, technology, furniture, maintenance and future upgrades all demand capital.
That same money may be needed for people, inventory, marketing, systems or entry into a new market. Owning an office is valuable only if it does not leave the operating business short of liquidity.
Leasing converts a large upfront commitment into a more predictable operating expense. It is not necessarily cheaper, but it can keep capital available for the activity that actually generates revenue.
Business needs change faster than property
A company may hire quickly, adopt hybrid work or move closer to customers. A location that works today may become inconvenient within a few years.
A sensible lease can provide opportunities to expand, reduce or relocate at defined stages. Ready or professionally managed space may also save months of fit-out and management attention.
This flexibility is visible in the wider office market. CBRE reported that India recorded 45.5 million sq. ft. of office absorption in the first half of 2026—the highest half-yearly level on record—and flexible-space operators represented 27% of Q2 leasing. These figures do not prove that leasing is right for every company, but they show that flexible occupancy has become an important business choice.
Ownership still has its place
A profitable company with stable space requirements, surplus capital and confidence in a location may benefit from purchasing. Specialised operations may also need permanent facilities.
The decision must therefore compare total occupancy cost, cash flow, loan burden, flexibility and opportunity cost—not rely on the slogan that rent is wasted. I have also written about why infrastructure and execution matter in real estate; those fundamentals remain important whether a business leases or buys.
My practical view
For a young or fast-changing business, leasing can preserve focus and freedom. For a mature company with stable needs, ownership may be sensible.
The office should support the business. The business should never become trapped by the office.
—Tushar Kumar
This is a personal business perspective, not financial or investment advice.
Source
CBRE India, Office Figures Q2 2026, published 5 July 2026.