What Is the Purpose of Leasing Property?
Some businesses lease commercial spaces for their offices. Meanwhile, others are expanding their operations, requiring warehouse buildings up for lease to store inventory and materials. But what is the REAL purpose of leasing a property?
Option to Occupy Spaces That You Can’t Afford to Buy Otherwise
Leasing a property will allow you to get a commercial space you most likely can’t afford to buy outright. This is true for small business owners who want to get their businesses up and running in a prime location.
For example, office spaces in Detroit can be expensive. But if you’re someone who wants to open up a shop in the city, an office space for lease in Detroit will be a feasible option for you. This will give you the opportunity to be in a desirable area without having to break the bank.
Leases are usually shorter than mortgages. So, if your business needs some change or you need to relocate, you can do so without being tied down by a long-term mortgage.
Let’s say your logistics business is expanding, and you need more space. Then, you can look for warehouse buildings for lease that will suit your needs at the moment. When your business outgrows that space, you can look for another one without worrying about selling the property.
Less Capital Required
Unlike buying a property outright, leasing requires less capital. So, if you have a limited budget, leasing is a good option for you.
For example, when you buy an industrial building for sale, you’ll need to come up with a substantial down payment. But if you’re opting for warehouse buildings for lease, you won’t have to worry about that.
You can even use your saved-up capital for other things, like investing in more equipment for your business.
Access to More Liquidity
When you lease a property, you will enjoy more liquidity. This means that it will be easier for you to convert any asset or security into cash. So, suppose you need money for something urgent. In that case, you can easily get it without having to worry about liquidating your property.
Let’s put it this way, you’re tying up a lot of your money in one asset when you buy industrial buildings. But when you choose warehouse buildings for lease, you can have that same space without having to use all of your money.
Again, this frees up cash you can use for other essential business-related things.
Last but not least, opting for office spaces or warehouse buildings for lease can give you some tax benefits.
Generally, your rental payments are fully deductible from your business’s taxable income. Not only that, but you will be exempted from paying capital gains or recapture tax. And, when you decide to move, your moving expenses will also be deductible as a business expense.
Considering all these benefits, there would be no reason why leasing is not the ideal option for you. So, what are you waiting for? Start searching “business real estate for rent near me” today, or get help from a tenant representative!
Locate the Right Commercial Properties for Lease with Us!
Finding suitable commercial spaces for rent can be overwhelming, but it doesn’t have to be. Here at PA Commercial, LLC, you will have a certified real estate negotiation expert who will help you every step of the way.
We will work with you to find the best possible lease terms and properties that fit your needs. So, if you’re looking for office spaces or warehouse buildings for lease in Detroit, don’t hesitate to give Levi Smith at PA Commercial a call. We would be more than happy to help you out!
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