Whether you’re the CEO of a business or an operations manager, exploring your options of where you will run your business is vital. From corporate offices to niche storefronts, understanding the options you have is vital. As such, you’ll want to look into leasing vs. buying property for your commercial business. The following blog explores the advantages and downsides of each choice to help you make the most informed decision. Similarly, you’ll learn why enlisting the assistance of a Texas commercial real estate lawyer is essential for your needs.
What Are the Pros and Cons of Leasing Commercial Property?
If you’re a business owner considering leasing, it’s essential to understand the benefits and disadvantages of this option.
Generally, leasing offers a fixed monthly cost, so you won’t have to pay for considerable repairs. This allows you to know what you need to pay each month. Similarly, you have more flexibility. Whether you want to move your office closer to your distributor or warehouse, you can move spaces once your lease is up. Finally, you won’t need to make an expensive down payment on the property like you would if you were purchasing it.
However, leasing is not without its drawbacks. Unfortunately, rent can be much more expensive than monthly mortgage payments. Similarly, you have less control over the property, meaning your landlord can increase your rent at any point. Also, if you go out of business before your lease is up, you’ll need to continue making payments.
What Are the Benefits and Drawbacks of Buying Commerical Property?
On the other hand, you may want to purchase your space. One of the significant benefits of buying a commercial property is that you can build equity in this property, regardless of whether you buy it outright or mortgage the property. Similarly, if you have enough space, you may decide to rent out the additional space. This allows you to make a second income stream. Finally, owning your space can provide considerable tax breaks when filing.
While buying a property has some significant benefits, you may find there are downsides to purchasing a property. This includes the significant down payment you may be required to make. Similarly, there is always the possibility that the value of the property will depreciate by the time you decide to sell, meaning you may lose money.
Leasing vs. Buying: Which Is Right for My Needs?
As you can see, there are many considerations you must make when determining whether purchasing or leasing property is right for you. As such, you’ll want to weigh your options carefully before making a final decision.
Regardless of whether you lease or buy, ensuring you enlist the assistance of an experienced commercial real estate attorney is vital to protecting your investment. At Dillard Property Law, we understand how complex these situations can be if you’re unfamiliar with how to navigate them. Luckily, our firm can help you handle the complexities of this process so you can focus on your business and livelihood. Contact us today to schedule a free consultation with our firm.
