Despite a significant increase in online trade in recent decades, many businesses still like to operate from headquarters. This could be an office building, workshop or store.
Commercial real estate is typically owned outright or leased. Committing to either option is a significant decision and whichever route you opt for, the deal needs to be in your best interests.
What are some of the benefits of owning your business headquarters?
It may be less expensive in the long run
Purchasing commercial real estate means forking out a significant sum of money initially. Nonetheless, it could still be less expensive than renting your headquarters for several years.
Once you’ve purchased the building, it’s yours to do as you please. Some lease agreements can be restrictive and they may impact your daily operations. Owning the building outright prevents you from having to deal with this.
The property may increase in value
A lease means that you pay an agreed amount to the owner of the premises. While you can use the property during the lease period, once that lease is over, the building no longer has anything to do with you.
On the other hand, a building that you purchased remains yours even if you cease business operations. It’s an investment that you can recuperate funds from or potentially even make a healthy profit.
Before purchasing a piece of commercial real estate, it’s important to weigh up the benefits and potential drawbacks. You should also consider seeking legal guidance before making any firm commitments.