What is a potential consequence of owning a building for a business?

Owning a building for a business can indeed lead to reduced flexibility of the business. When a company owns its premises, it typically incurs certain fixed costs and long-term commitments that can limit its ability to adapt quickly to changing market conditions or business needs. For instance, if a business experiences a downturn or needs to downsize, it may be much harder to sell or lease a property than it would be to terminate a lease agreement on a rented space.

Ownership ties up capital in real estate and may require significant time and resources to manage and maintain, which can impede rapid growth or relocation opportunities. Unlike leasing, where a business can often easily adjust its space needs, ownership can create a more static and less agile operational environment.

In contrast, options suggesting increased flexibility in operations and reduction in operational costs generally apply more to rented spaces where businesses can move or scale more easily. Enhanced employee retention is also not a direct consequence of owning a building; rather, this aspect relates more closely to workplace culture and other employee engagement factors.