If you’ve just launched a business or are ready to move your business out of your home office or garage, you will have to decide whether you want to buy or lease commercial real estate for your office space.
When you lease a commercial space for your business, you are renting it from its owner. Leases are available for a set term, at which point you can renegotiate if you wish to continue operating your business from that location.
Here are a few reasons why leasing commercial space would be a good choice for your business:
When you buy commercial real estate, you have to make a significant down payment, usually between 10 percent to 40 percent of the property’s value. You are also responsible for the closing costs and appraisal fees. Renting gives you more flexibility because you don’t have to tie up as much cash as you would if you were buying.
No Major Repairs Or Upkeep
Significant maintenance problems and upkeep will be the responsibility of the property owner. So if the furnace needs replaced or the roof is leaking, you won’t be footing the bill.
Your rent will be the same each month so you can plan your budget accordingly. You also won’t need to worry about the incidental expenses that come up when you are the property owner.
As a renter, you can deduct your whole lease payment, property insurance, property taxes, maintenance and ongoing costs such as utilities from your taxes.
Expanded Location Opportunities
By renting, you can have access to prime, sought-after commercial real estate locations that may not be available for purchase. It’s usually easier to qualify for a lease than a commercial real estate loan, so you have more options of operating your business out of a highly desired office location.
When your lease is up, you will have the option to renew if you’d like to rent the commercial property for another term. This gives you the flexibility to change locations if you need or want to. You are not locked into a mortgage, committing you to a specific location and leaving you vulnerable to real estate market fluctuations.
At Camden Management, Inc. we are committed to the success of our clients and we know that happens when you have a practical, functional space to work out of that promotes productivity and teamwork.
Contact our team today to learn more about why leasing is such a great option!
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