Should You Rent or Buy Your Business Facility? Here’s What You Need to Know
Finding a suitable facility is one of the pillars of starting a business and making it successful and long-lasting. However, before you start looking for the ideal location and property, you first have to decide whether you’ll purchase an office for sale or lease a space for several years. Both options have their own pros and cons, so take the time to do your research and find out which one best suits your business’s needs. Start your research by exploring our helpful blog below:
What Are the Benefits of Purchasing a Commercial Property?
When you buy a warehouse or office space for sale, you’ll have the chance to build equity while benefiting from capital appreciation. So, while you might have to pay a large down payment upfront, it’s worth the cost since it will help your business build wealth and increase its overall value.
Depending on the size of the building or office space for sale, you might not be able to occupy the entire area. You can then choose to lease out the leftover space to another business and create an additional income stream, which can be used to grow your business and achieve your long-term goals.
One of the most significant benefits of owning a commercial property outright is having complete control over it. There’s no need to negotiate with a landlord whenever you want to do a remodel. You can customize the space to make sure it showcases your business logo and colors and reflects your business image. You can also enjoy the benefits of paying a fixed monthly mortgage instead of worrying about increasing your rent when the lease ends.
When Does Leasing a Commercial Property Make More Sense?
While buying an office for sale does have its advantages, it’s not a feasible choice for many entrepreneurs. This is particularly true for those who are still starting out and don’t have the financial capacity to pay a substantial down payment. This is also the case for businesses that need to have access to liquidity as well as the flexibility to leave the property as soon as the lease ends.
Another benefit of leasing is that you can deduct most of your property-related costs from your taxes, not just the lease payments but also property insurance, utility payments, and maintenance expenses. This is not the case when you purchase an office for sale since only your mortgage interest payments can be deducted from your taxes.
Weigh the pros and cons listed above to decide whether to rent your business facility or purchase a property outright. If you’d like to get more tips or if you need help with finding the right office for sale or lease, don’t hesitate to call Levi Smith at PA Commercial, LLC. We help our clients choose the ideal commercial property for their business, and we’re the right experts to trust if you need assistance with finding industrial buildings, medical offices, and more. Get in touch with our real estate experts today!