If your business has grown to the point that it’s time to move out of your home office, congratulations! Expansion is always a great thing in the marketplace. However, as you’re in the process of looking at different commercial properties in your area, you’re probably wondering if it makes more sense to buy some office space or to lease it instead.
The reality is that there isn’t a concrete “yes” or “no” to that kind of question. It’s all about stepping back and assessing your budget as well as your company’s specific needs. But if you’d like to know some of the benefits that come with buying and renting, here is some information that can help you to make the decision that will truly be best for you and your business.
The Benefits of Buying Commercial Property
Let’s go with the benefits of actually owning commercial property first. Aside from the fact that it’s something that you will own (for the record, when it comes to property, there are automatically tax benefits that come with that), purchasing property often has great financing opportunities through loaning institutions. Plus, owning commercial property is a surefire way to build equity. And, if you have a space that is large enough, you can explore renting some of it out to other tenants. That way, you can use your investment in order to increase your own cash flow. There’s one more thing. If you use a realtor who specializes in commercial real estate to find some property options for you, there’s a good chance that they will recommend areas of town where the property value is expected to rise over a course of time. That way, should you decide to sell it at some point, you can make a substantial profit.
The Benefits of Renting Commercial Property
Although there are obviously a lot of advantages that come with purchasing commercial real estate, that doesn’t mean that there aren’t some benefits of renting commercial property too. If you were to speak with a professional who works at place like Uptown Center about what some of those benefits are, one of the first things that they would probably mention is that when you rent (lease), customarily, you only need the first and last month’s rent. That could range between $5,000-10,000. However, when you plan to buy a piece of commercial property, you will need to put down a significant down payment. Oftentimes, it’s around six figures. Also, just like with a home, when you own the commercial property, you are in charge of repairs and maintenance. This isn’t something that you have to concern yourself with when you’re renting, though. A landlord or property manager will take care of it for you. Also, if your business happens to grow even more and the space that you’re renting no longer accommodates your needs, all you have to do is give notice and wait until your lease runs out. Then you can simply move to another location without the worries of having to put the property on the market and waiting for it to sell.
As you can see, deciding if you should rent or buy is not the simplest question. Hopefully, this information has helped you to figure out what would ultimately be the smartest move for your company. For information on how to find a reputable commercial real estate agent within your area, visit Makaaniq.Makaan.com and put “find good commercial real estate agent” in the search field.