Looking for commercial space: should you buy or lease?

Whether you need space for your small business or you already achieved success and you need to expand, you are probably searching for the right commercial property. Even though location seems the most important factor to consider when initiating the selection process, the truth is that you have to keep in mind other aspects as well, such as physical condition, interior and exterior limitations, access and parking, allowable uses and last but not least costs. Even after you choose a specific property, evaluation is not a step that you can easily overlook. In fact, you have to allocate yourself at least a month to double check your list and determine if the respective commercial space meets all your requirements. Consulting with an experienced advisor is not a bad idea in this case. Identifying the most suitable commercial building for your business is crucial, but this article intends to approach another topic, namely the grand debate on buying or leasing it.

Buying property for your business: benefits and drawbacks

Indeed, both of these options get you that much-needed commercial space, but each one of them has benefits and drawbacks that you should be able to recognize to act in your business’ favor. Commercial property acquisition comes with some clear advantages including fixed costs due to the lack of rent, tax deductions, capital gain and full control. If you purchase a spacious building from the very beginning that allows your business to grow, then you will not have to think about finding starting another selection process ended with a considerable financial investment for another property in the future. Actually, if you have more space than you can use, this means that you can even make money by leasing it to other companies. However, not everything in life is milk and honey so this choice also comes with disadvantages including staggering initial expenses, location downgrades, maximum responsibility and the pressure of selecting the right building because once you buy it, you cannot go back.

Leasing property for your business: advantages and disadvantages

Clearly, this paragraph focuses on analyzing the second option, namely leasing commercial space. Those who direct their attention towards leasing probably already know that they can qualify easier, the process is quicker and they have more freedom in terms of choices, they do not have to bear maintenance and repair costs, they do not have to make a down payment and they enjoy lower tax payments. Indeed, leasing does come with all these great advantages and it represents the ideal solution for those entrepreneur or business owners who necessitate a commercial building, but they are not ready for such a big commitment like owning a single property forever. However, once again disadvantages make their appearance and ruin the entire dream. We say “dream” because only in your dreams you can get away with the perfect choice that does not cause any negative consequences. Leasing property for your business means no equity in business, less space for expansion and growth, little control, lease renewal ends and lease increases.