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Is it Better to Buy Or Lease Commercial Space For Business?

Your business location must be made to fit your company's budget, the distance requirements and ease of operation. For some business owners, leasing affords a sense of freedom and reduce the financial burden of an advance, but may be too restrictive for some types of surgery.

The decision to buy a piece of commercial property offers its own set of risks and benefits, and should be considered carefully before entering into a mortgage contract.

Cost Effective

Leasing commercial space will normally require 1-2 months to move-in deposits, making the space rental cost efficient way to do business. New business owners can be strapped for cash, and by leasing, rather than purchasing, shop or office is cost effective to set up shop with minimal funds.


Leasing commercial space provides many entrepreneurs room to grow, downsize or change locations. Although once you sign a lease, you are locked into a fixed amount of time to make lease payments, the term may be only a matter of months to be released and start over in another location.


Set up shop without the burden of a mortgage to pay allows a sense of financial freedom. Though, buying a piece of commercial property can be rented or sold to another, there may be months before the owners receive income from the property. A hefty mortgage can also interfere with the business benefits and may require downsizing personnel.


A rented office or a store to have the owner to lean on, eliminating the tedious responsibility with plumbing, electricity and security. In a rental situation, any repairs or legal obligations are left in the hands of the management team building.


In some situations, you may rent your office space leased to others. However, it should be cleaned in writing from the management office, and the attention given to their rules and regulations to lease the space.

Buying Commercial Space

Buying a piece of commercial property to add a guarantee that the room is guaranteed and can not be given to someone else. In a rental situation, when the lease expires, the update process may not have the same initial requirements, thus proving unprofitable to renew. However, when you buy, you are guaranteed a prime location.

As a piece of residential property, commercial owners can withdraw cash against the mortgage. In an emergency financial crisis, have a mortgage to borrow from lending a sense of security and the provision of funds. Most commercial purchase will need 20 to 25 % above the purchase price, providing instant equity for the business owner.

When you have bought a property, it is you who have to do with as you wish. The formation, expansion and reconfiguration is yours for the taking. ownership allows a business structure that will be formed around the company to fit and use of space.