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Is it better to buy or lease commercial real estate? 

On Behalf of | Jun 23, 2023 | Real Estate

If you have the capital available, you might be thinking about whether it’s a good idea to buy a piece of commercial real estate as opposed to leasing one. 

The answer will always be dependent on what’s right for you and what your wants and needs are. With pros and cons for both options, how do you decide what’s the right choice for you and your business? 

Pros and cons of buying a commercial space 

The most obvious benefit to owning a piece of commercial real estate is that the money you’re spending is going towards helping you own something. You’re building equity and it’s a good way of generating some long-term wealth. If you decide you no longer need the space you can sell or even lease to another party. 

The drawback of buying a property is that it can require a substantial down payment. It’s also a good idea to see whether it aligns with the long-term goals of the business. Do you intend to stay where you are or is this a short-term location? If you’re the latter, buying might not be the best solution for you. 

So, should you lease commercial real estate? 

Leasing is a great option for companies who are just starting out or are still relatively new to their market. It’s more affordable when capital is tight as it doesn’t require a large initial investment. You may also be growing quickly and considering a move or adding multiple additional locations quite quickly. Leasing gives you more options and flexibility in this regard. 

Whether you’re buying or leasing, investing in commercial real estate is a big decision to make. Having legal assistance with the process makes sure you get the best deal for your business. 

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