In 2012, commercial property accounted for 87 billion square feet of space.

If you’re interested in finding some commercial property for your business, you might be wondering whether it’s better to buy or lease it. 

Thankfully, we break everything down here for you, so make sure you keep reading!

Buying

When it comes to buying commercial properties, you’ll first have to figure out how to find a commercial realtor.

They will really help you find the best properties and deals, but they’ll also fill you in on what they think might be best for your situation. 

Pros

Interest rates are really low right now, so you’ll be able to get a mortgage that has really low rates! Once you finally own your place, you’ll also have more stability as a company.

If you’re a company that has a lot of large equipment, you may not want to have to move it back and forth every time you go to a new place. Therefore, it’s always better to have your own permanent space and not have to worry about a higher rate at the end of your lease. 

Cons

There are disadvantages to buying your own space though. In most cases, you’ll have to put a down payment on the property before you can buy it. This down payment can be anywhere from 10 to 40% of the costs of the business. 

Another downside of owning your own commercial property is that you’re then liable if anyone is hurt on the premises. Thankfully, you can get liability insurance, which will help to keep you protected in case anyone does get injured and tries to see you. 

Leasing

If buying isn’t right for you, you may want to consider leasing commercial properties.

However, there are also pros and cons to this, just like there are for buying.

Pros

One of the pros of leasing commercial properties is that you’ll have a fixed monthly cost. You won’t have to worry about your mortgage going up or down. You also won’t have to pay anything if there are any repairs or maintenance needed. 

By leasing a property, you could also end up with a few tax breaks to help you save money. You could deduct your lease payment, but if you bought the property, you could only deduct the interest from the mortgage. 

Cons

One of the biggest problems with leasing a property is that your rent may go up every year. 

While the monthly cost will be the same, the owner of the property could decide to raise the price of the property as years go on, which can really put a problem into your budget.

Learn More About Commercial Property!

These are only a few things to keep in mind when looking for commercial property, but there is plenty more to keep an eye out for!

We know that trying to buy any type of property can be overwhelming and exhausting, but we’re here to help you out!

If you enjoyed this article, make sure that you explore our website to find more articles just like this one.