You’re looking for a new commercial property for your business. As you explore your options in the area, you find many properties that are available for lease, but there are also a number of them that are available for purchase. You find yourself wondering which option is better, buying or leasing.
There is no one-size-fits-all answer. It really depends on your situation. But here are a few things to consider.
Is your business growing?
If your business is actively growing, then a lease may be better. There’s a chance that the property you choose today may not actually fit the business in just a few years. If you outgrow a leased property, you can just change locations.
Do you want an ongoing expense?
You also have to consider your budget and financial situation. Leasing a property means that you have an ongoing monthly expense — and that never ends. If you buy a property, you still have to pay taxes and upkeep, but this has a much different effect on your budget. If you have the money upfront to buy, that may relieve some financial pressure in the future.
What are you responsible for?
Another thing to consider is how a potential lease is structured. If you buy a property, you’re responsible for all other costs, such as taxes, insurance and maintenance. But what costs are included in the lease? Do you still have to cover things like property taxes, or are you only responsible for a monthly rent payment?
These are just a few details to consider as you begin looking into your options. Take the time to consider what legal steps you should take while either buying or leasing your next property.
