You may be considering buying or leasing commercial space to house your new business, support your expanding business, move to a better location, or get a space with more attractive occupancy features.
Should You Buy or Lease Commercial Space?
Before making the decision to buy or lease commercial space, it is critical to ask yourself three questions. First, how long do you feel you can commit to a location or building? For short-term projections, leasing is usually more cost-effective than buying. Second, how fast is your business growing? Fast growth may suggest the need for more flexibility to move. Third, what is your local economy like? Local economic conditions may help you make the leasing versus buying decision as you consider the value of a property investment versus lease payments.
The Benefits to Leasing Commercial Space
Location flexibility. A leasing tenant can decide to change locations once their lease is up if they find they need more space or different business conditions without incurring a financial loss.
Cost stability. The cost of leasing is generally lower than buying a space because the tenant is exempt from any unforeseen repairs or reconstruction costs.
Reduced risk. A lease only requires a tenant to put down a security deposit. Collateral and bank financing are not required.
No maintenance responsibilities. A leased office space does not bother a tenant with the maintenance of systems like plumbing and HVAC.
Tax benefits. Leasing commercial space provides tax benefits.
Steps to Find the Perfect Commercial Space
Develop the criteria for the property you need.
Get a tenant rep to help you find properties.
Conduct virtual and in-person tours and examine each property carefully.
Ask for a lease proposal from each landlord that you want to consider
Make a final selection and negotiate the lease.
Seek Expert Funding Assistance to Achieve Your Goals
Contact Aspen Capital Solutions, based in Atlanta, GA for customized financial solutions to meet your needs. We provide a wide range of financial products with financial expertise you can trust.