For most seeking out commercial real estate, chances are you are a business owner. For the many Americans that use office space to run their organizations, we broke down insight on both ends of the spectrum when it comes to utilizing and purchasing office space.
So, What should you do? Rent or Buy.
The Good & The Bad When Buying Commercial Real Estate
When owning, your organization has full control over whatever you’d like to do with the property. Not having a landlord can be a benefit for larger scale businesses that plan to use their space for their business needs without having to worry about tenant policies. Owning also gives businesses the benefit of paying down and building equity in the property that is purchased. The commercial asset can also create cash flow for your organization if and when you see fit to diversify space for another business’s usage. The added value that can be created is a beneficial way to increase your businesses valuation & further one’s long term business exit strategy.
Reasons You Should Consider Leasing a Commercial Property
Leasing is a great way for businesses to hedge long term liability on operating space usage. By allocating less under an agreement per Sq/ft for leased office space, businesses can operate worry free without having a stake in the ground that may tether them away from future expansion in the future. For early stage businesses testing various verticals and concepts in the marketplace, short term office leasing is an amazing way to increase bottom line performance and still get the resources needed to operate at a high level.
With a quickly changing marketplace across the world in various commercial real estate markets, make sure you choose the right decision for your businesses long term success.
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