One major deciding factor is whether to buy or lease your commercial property. There are many pros and cons to each approach. The best option is wholly dependent on several variables.

Cash outlay

One of the most significant differences between buying and leasing a commercial property is the initial cash outlay. Purchasing is only an option for those that can afford a significant cash commitment. Many less established companies prefer to reduce the risk by renting rather than by making a substantial commitment to buy.

Growth and expansion

Business moves fast – huge growth and the need to expand can be just around the corner, but it can be costly and time consuming to buy a property that you suddenly grow out of. However, with a purchased property, there is the possibility to lease at a profit, thus creating a second income stream.

Capital appreciation

When you purchase a commercial property, you are also investing. Thus, if your area is experiencing satisfaction, you could sell at a profit. You may also gather profit by leasing additional space to other companies.

If you plan on leasing or purchasing, you’ll want to get familiar with how the decision will affect your business objectives. If you are a new business, having an experienced real estate broker review your real estate goals is imperative.