To Buy or To Lease: Pros and Cons of Ownership and Leasing
harkins / September 25, 2015
When you own a business there are many difficult decisions that need to be made. One of the most difficult is whether to lease or buy a commercial property. For each business owner this decision is different, but we hope that this blog can serve as a guide to help aid your decision making.
Buying – in the long term you may end up paying less for the facility if you purchase it, this is a similar thought pattern for making the decision to buy or lease a residential property. The property is yours to expand and change as your business does. If you can see your business operations remaining in a space long enough to pay off the initial investment, buying may be the best option for you.
Leasing – Leasing is a great option for businesses who are unsure of what the future holds. Small up-front costs, in comparison to buying, allow your business to “test out” a location for the duration of the lease. When you decide to move onto bigger and better things, you don’t have to worry about selling the property either.
Buying – When you buy a commercial property any property maintenance and management falls on you, the owner.
Leasing – When you lease a commercial property the landlord is responsible for any property maintenance and management necessary.
Buying – Should your company grow or require renovations to accommodate your operations, it is your decision to make the renovations. You have (mostly) free reign over what you do — zoning permits pending.
Leasing – When you lease a property and desire to make renovations to accommodate your business, you must first seek permission of your landlord. If they will not allow you to make the renovations, you may have to seek another location that will better meet your needs.
These are only a few differences in the buying vs. leasing a commercial property debate. If you have any questions about what your options are, or what best would suit your business’s plan, contact Harkins Commercial Property today. Our realtors can help you find the space you need and help guide you to make the best decisions based on your needs and goals.
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