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4 reasons companies are increasingly opting to lease space over owning 

As businesses evolve, the question of whether to rent or own industrial space becomes increasingly important. While both options have their advantages, many companies are choosing to lease over owning. This shift fits within a larger trend of the growing rental economy and the rise of everything-as-a-service (XaaS) — and commercial real estate is no exception.  

In today’s rapidly changing economic and market landscape, leasing offers less friction for companies to stay agile and keep a competitive edge. Here are four key ways how.  

  

1. Complex Land Ownership and Development Process 

In much of Central and Eastern Europe (CEE), land ownership can be fragmented, with a single parcel involving multiple stakeholders or requiring the purchase of land from different owners. Acquiring land can be time-consuming and legally complex. 

Even after securing the land, businesses face additional hurdles: obtaining permits, selecting contractors, and navigating construction processes, which can take months or even years, especially for those unfamiliar with local regulations. 

Leasing, on the other hand, allows companies to bypass these complexities and focus on their core operations, rather than managing a complicated development process. With 26.4 mio sqm of landbank (as of FY-2024) prime located land which is often zoned and permitted and ready for construction, CTP is fully stocked and loaded for our clients’ next move. This process simply saves time, and money.  

  

2. High Upfront Costs and Capital Lock-In 

Owning an industrial facility requires  significant capital upfront. This ties up capital that could be better used for your business’s other priorities, such as expanding inventory, hiring talent, or investing in technology upgrades. Furthermore, getting financing takes time, adding friction and slow down to your strategy and rollout.   

Leasing offers a more flexible alternative, freeing up working capital and allowing businesses to remain agile and responsive to changing market conditions. CTP takes it a step further by offering our clients financing and rentalised options to smooth out the financial transition and smooth out fit-out costs. 

 

Dowiedz się, jak CTP oferuje kompleksowe rozwiązania

 

3. Quick and On-Time Move-In Options 

Leasing provides businesses with the option to either move into existing facilities or collaborate with developers for built-to-suit solutions. Established developers bring local expertise, strong supplier networks, and regional know-how to ensure timely project delivery and adherence to specifications.  

CTP is proud to offer all this, plus an in-house team to deliver everything needed between consulting locations to aftercare. This is particularly valuable if a company is expanding into new unfamiliar markets, where they do not have experience navigating the local business environment or permitting processes.  

With speculative projects always under construction in locations where we see strong opportunities for our clients, we help them stay ahead of the curve and hit the ground running fast as possible.  

You say where and what; we say let’s go now! 

 

4. Built-In Flexibility and Scalability 

In today’s fast-changing business environment, companies need to be able to scale and adapt quickly. Leasing offers greater flexibility than owning, enabling businesses to adjust their space needs without being tied to a long-term asset.  

Whether expanding, downsizing, or relocating, leasing allows businesses to make changes with minimal disruption, avoiding the hassle of selling or retrofitting owned facilities. Between our built portfolio, under construction projects, and landbank paired with our in-house professional local teams, CTP provides our clients with an ultra-fast one-stop shop.  

   

Ready to Make the Move? 

CTP provides the ideal solution for your next expansion, whether you need a turnkey facility or a custom development tailored to your specific requirements. Use the CTP Property Finder to explore available spaces, or connect directly with a local business developer to discover the best fit for your growth strategy. 

 

Explore CTP’s portfolio

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