Deciding whether you should lease or purchase commercial space for your business can be difficult. One way you can arrive at a rewarding conclusion is by asking yourself a few questions about your goals, plans and priorities.
What Do You Need From the Space?
The nature of your business could be an important factor in deciding whether you should lease your space or purchase it. If your business simply needs standard office space to carry out its tasks, it makes sense to rent. A restaurant, on the other hand, might need to be more customizable so you can create your desired atmosphere. When you own your commercial space, you have the freedom to alter it as needed. If you can reasonably conclude that you can make a rental space work for you the way it is, then leasing could be a great option.
Ease or Equity?
Acquiring commercial property for lease is relatively easy, and not being locked into a long-term financial commitment is another plus. When you purchase property, you must have funds on hand to place a down payment, but you also gain equity with each monthly payment. A compromise for this dilemma is to lease commercial space while you are building your business and a customer base and then relocate to a purchased property once you have established your presence in your community. This way you can get your company up and running and navigate many of the early pitfalls of running a business without having the hefty sum of your mortgage looming over your head.
Convenience or Control?
There are some conveniences to leasing property that certain business owners may consider irreplaceable. For example, maintenance and repairs of commercial properties are often the duty of the landlord. You may value the convenience of not having to shop around for repair work if something breaks.
On the other hand, some business owners may prefer to be able to oversee any repairs themselves, and consider this an irreplaceable asset. Furthermore, when you own your commercial space you do not have to worry about your rent being suddenly increased or your landlord refusing to renew your rental agreement.
The option that is the best fit for your situation will depend upon the nature of your business, your needs for your space, and your personality as a business owner. When you carefully weigh all of these factors, you will be able to make a wise choice for your company’s future.