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The decision to lease or buy your business space is a complex one, more challenging even than deciding to rent or own a home. Take a look at a just a few factors you ought to consider before making a decision.

How Fast Do You Expect Your Business to Grow?

Trying to anticipate the size of your business in the next five or ten years can be difficult. If you foresee the need for more space in the future, you might be better off leasing for now until your growth reaches a plateau. If your business space needs will stay fairly constant, like those of an independent optometrist or dentist, buying a commercial property might make the most sense.

How Much Cash Can You Spare?

Getting a commercial mortgage requires a lot of money upfront. The largest sum goes toward the down payment, which is usually around 35 percent of the purchase price. Depending on the size of your facility, that could amount to hundreds of thousands of dollars. Besides the down payment, commercial mortgage borrowers will also be responsible for all the associated fees, like appraisals, inspections and closing costs. If you don’t have much free capital, leasing a space is definitely the cheaper way to go.

Do You Want to Be a Landlord?

Many commercial properties are designed to house several businesses under one roof. Would that type of building suit your need? You could lease out several of the spaces for other retailers or companies, effectively letting them pay most of your monthly mortgage. This can be very profitable, but it will also require more work as you handle rent paperwork and maintenance requests.

These are but a few of the things business owners need to take a look at before making a decision. Both buying and leasing have their merits, but it will all depend on the specific needs of the business.


Search for Small Business Loan Sources and receive your matched lender list
AND received FOUR free Business eBooks worth $39.95!
Search for Small Business Loan Sources