There’s a common misconception in the commercial real estate industry– buying is always preferable to renting. Sure, outright purchasing a property does have its advantages, such as customization prospects and long-term availability. But renting is also an equally solid solution to office real estate. Many people say, “Why would you continue to line a landlord’s pocket by renting,” or “Why throw all that money away every month?” But those people are grossly misinformed about how renting actually works. In fact, in some situations, renting is actually the ideal form of acquiring commercial real estate. Here are four reasons why renting works when it comes to commercial real estate.
Renting commercial real estate is much more flexible than buying. This is because of the nature of lease agreements. If the commercial property space doesn’t end up working out, it is so much easier to not renew or terminate a lease than having to sell your property and refinance.
Lower Upfront Commercial Real Estate Costs
Purchasing a commercial real estate property usually requires a hefty downpayment, which can limit investment cash for a long while. With a rental, you are likely looking at a small down payment simply for liability purposes, nothing compared to a purchasing payment. So, if something goes wrong with the rental property or it is not what you expected, the financial loss is not too bad, as compared with a buyout payment. And let’s not forget the other costs associated with buying, like due diligence and pre-purchase inspections.
Much Less Responsibility
Let’s face it– as a business owner or office manager, one of the last things on your mind is the maintenance of your commercial real estate. There are so many other things to care about, like maintaining a successful business and making a profit. When you buy a property, all of that responsibility to maintain the property is on you, just adding yet another stressor into your daily life. But by renting commercial real estate, you assume the property manager will be doing most of the work as part of the contractual agreement. So sit back, and relax.
Better Life for Fewer Costs
Right now, commercial real estate buying costs are low. But that’s due to the world circumstances right now. Some offices or businesses may be tempted to buy at super low prices right now. But is it really a good investment overall? With many offices switching to permanent online work, making a big investment in commercial property may not be worth the risk right now.
Trust the Professionals at Clagett Enterprises for Your Realty and Management Needs
If you’re looking for an experienced property management company, the perfect realtor for your property, or a professional to assist you during your purchase of any home, you can rely on Clagett Enterprises. Clagett Enterprises is a full-service real estate company with almost 30 years of experience in the Frederick and Western Maryland area. For assistance with commercial sales, leasing, management, and development and consulting, contact us online or give us a call at 301-665-6009. To meet our team and see some of our beautiful homes, follow us on Facebook and Linkedin.