All growing small businesses may one fine day face the question of leasing or buying commercial space. If you have a successful business and your current lease is about to expire, you may want to consider purchasing commercial or industrial space instead of continuing to lease. So, what are your options?
Leasing Vs Purchasing Commercial Space. Advantages.
The US commercial property sector includes the following key segments: industrial, retail, office, lodging, and amusement. According to Statista, an online statistics, market research and business intelligence portal, the value of private office construction starts in the USaccounted for $6.6 billion in the 1sthalf of 2017.
On the whole, commercial space leasing and purchasing have a number advantages, which are:
- No down payment
- Repairs are handled by property management
- You have short-term options
- Prime property
- Free up working capital to respond to opportunities in the market
- More time to focus on your business
- Property is an investment
- You can save money
- You are your own landlord
- Fixed costs
- Tax deductions
- Additional income
- Retirement savings
Factors to Focus on When Leasing Vs Buying Commercial Space
When deciding whether to buy or lease commercial space for your business, you might also be interested in countertop ATM machines. If yes, then consider turning to First American Merchant, an award-winning high risk business funding provider and payment processor, to get a low-cost countertop ATM machine for your business.
FAM has relationships with numerous ATM contractors and can find the right fit for you and your business. FAM has an option for every cash-only business─ from small, countertop ATM machines to standard, yet streamlined full-size ATM machines.
What are the factors to take into account when leasing or purchasing commercial space?
- Take into consideration the area yourtarget customers are in. Ifyou don’t own space close to it and it’s difficult to find one to purchase, you’ll have to lease commercial space in that area.
- When you’re the owner of your commercial space, you know what your future costs will be. Mortgage rates don’t undergo fluctuations like lease costs sometimes do.
- When leasing commercial space, the costs associated with property taxes, maintenance and repairs, security, parking, insurance, etc. are mostly included in a lease agreement. When purchasing a property, the mentioned expenses are your responsibility.
- If your business allows, you should also consider operating it at home. Home-based business owners generally enjoy a better work-life balance. Moreover, the expenses related to the space used for business are fully tax-deductible.
When deciding on whether to purchase commercial space for your business or not, consider consulting with an experienced realtor who’s experienced in commercial real estate, a lawyer in the field, a mortgage adviser, and your accountant. Finally, creating a mobile office that allows you to work from anywhere is something to take into consideration as well.