Should you buy or lease property? It’s a common question for business owners!
Business owners have the option to either lease or purchase business property. Just like with residential housing, housing your business comes with financial options. You could either pay monthly rent for a period of time, or you could pay a mortgage and manage it yourself. Should you buy or lease commercial property? Let’s take a look at the overarching pros and cons.
Reasons to Buy Commercial Property
Build Wealth
Reasons to purchase your commercial property include the potential to build wealth. In the long term, prices tend to rise, even if there are drops in the value along the way. You can find compelling arguments to owning your property versus renting in terms of wealth building, including that you can sell your property for a higher value years later.
Possibility of Renting Out
If you decide to close your business someday, you can convert your commercial property into a way to make a passive income. You will have the option of renting out the property to one or more commercial tenants.
Total Control
When you own your own business property, you can make it your own. You have total control over its condition, appearance, etc. While it comes with more responsibility, it can also give your business stability.
Reasons to Lease Commercial Property
Flexibility to Grow
Leasing could be a better option if you need the flexibility to move and grow. Your business might need a larger commercial space in a few years if you expect it to expand, in which case it makes more sense to rent.
An Uncertain Market
If you believe the commercial real estate market is not ideal for buying, then renting could be a good way to limit your losses if you ultimately want to buy a property.
Affordability
Leasing a commercial property could also be better if you want a property quickly, you don’t have enough capital for a downpayment, or you need to stay within a specific location for your customers.
Which Option Is Right for You?
Buying or leasing commercial property comes down to stability vs. flexibility. Purchasing gives you more control and the possibility of building wealth, but leasing lets you get the best deal and grow your business efficiently.
Trust the Professionals at Clagett Enterprises for Your Realty 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.