For Commercial Property, Should I Lease or Buy?

When opening a new business or transferring to a new location in Frederick, MD the most crucial decision business owners are faced with is whether to lease or commit to fully purchasing a potential property. The financial nuances to such a decision are considerable, and it’s important to consult with a knowledgeable real-estate professional before committing. To help you get a better sense of what may be right for your commercial sales enterprise, here is a list of the potential advantages and pitfalls of commercial leasing and property purchase.Commercial Sales Frederick MD, Commercial leasing


No Down Payment: Almost any property purchase will require a substantial down payment to help insure the security of the sale. This financial commitment can be a big hit to any commercial sales business, particularly newly founded ones. Leasing will allow you the opportunity to reinvest that money in your own business to help stimulate growth, or keep more funds in reserve as security.

No Maintenance: As long as property management is competent, you won’t be held financially accountable for any repairs that fall within the terms of your lease. So when the AC eventually breaks down or the heat goes haywire, you can place a call to your landlord rather than shelling out for these expenses yourself.

Mobility: As your business expands it may grow too big for its current location or you may realize that there’s a better area available for your particular type of commercial sales. Commercial leasing allows you the freedom to move and experiment with relative financial impunity.


Property Investment: Property, like anything other aspect of your business, is an investment. If there’s a potential location for you in an area with increasing property values buying, even if you may not be in the same location 5 years from now, will ultimately be more cost-effective than leasing.

Control: When you purchase a space for commercial sales, you are your own landlord. This will allow you to customize the structure and property for your businesses particular needs, and to change whenever you deem necessary without seeking landlord approval. (It’s still important to stay familiar with Frederick, MD’s zoning laws!)

Long term savings: While rent is always cheaper than the purchase price, if you have relative certainty that your business will be occupying a particular location for the long haul, it’s always better to buy. The long term costs of rent are always higher than property ownership. Additionally while money you use to purchase a commercial sales locale is not, in and of itself, tax deductible you can recover this over time by yearly depreciation deductions. Depending on several factors, including how long you have been in business, how profitable your business has been, and what portion of the purchase price or rent relates to the land itself, you may be able to save more on taxes through purchasing than renting.

Need Help Deciding?

If you’re looking for professional help deciding if renting or property purchase is right for you consider contacting Clagett Enterprises. At Clagett Enterprises, our team of licensed and bonded agents have unparalleled knowledge of the buildings, units and businesses that make up the commercial real estate marketplace of the greater Frederick area. Click Here to contact Clagett Enterprises today! We understand the diverse needs of our commercial clients, delivering results for property owners, business owners, investors, landlords and tenants.

If you have any questions about Commercial Sales in Frederick, please contact Clagett Enterprises at (301) 663-6011. You can also connect with Clagett on FacebookTwitterGoogle+Pinterest, and YouTube.





This entry was posted on Monday, September 8th, 2014 at 2:37 pm. Responses are currently closed, but you can trackback from your own site.