Successful entrepreneurs have business decisions to make each day. When the time comes to relocate your commercial headquarters, you typically have two options in Passaic, New Jersey. You can buy business real estate or lease your next commercial property.
Buying a property comes with several advantages, including:
- The property may increase in value over time
- You have control over the piece of property
- You can potentially increase your income by renting out extra space
Unfortunately, buying commercial real estate also presents a few disadvantages. For example, it is sometimes hard to qualify for the financing you may need to complete the purchase. You may also be financially liable for any injuries a customer or visitor sustains on your premise. As such, many people wonder if leasing property might be the better option.
Look at the pros and cons of leasing commercial real estate
One way to improve your decision-making is to compare the potential advantages of leasing against the possible disadvantages.
Get started by learning about the benefits of leasing.
- Possible tax breaks for your property expenses
- Flexibility to change your location in the future
- Fixed monthly lease expenses
- No large down payment is necessary
Now, you are ready to explore the potential drawbacks of leasing commercial real estate.
- You will not earn rental income
- Lease expenses can be costly
- You have no control over the property
- You cannot accrue equity when leasing
If you need further guidance when deciding to lease or purchase, consider learning more about commercial real estate in New Jersey. The knowledge you gain can help you make the ideal choices to grow a successful business.