Which choice is more profitable: buying or leasing commercial real estate?

Purchase of commercial real estateattracts many businessmen, but practically every small business starts with rent. Over time, the entrepreneur begins to think about whether to continue renting premises or to buy his own. In this material we will consider the main pros and cons of buying and renting commercial real estate.

Pros and cons of leasing commercial real estate

As mentioned above, small businesses often start in rented areas.

Real estate rentalshas several advantages.

Finance for development. Starting a business is the main goal of any new company. There is always the possibility that the project will fail. Therefore, it is better to invest money in development rather than in real estate for the first time.
Maneuverability. If for any reason the inflow of clients decreases, you can always quickly change location.

Minus - the owner of the premises will dictate his own rules.

Buying commercial real estate - advantages and disadvantages

It's often the case thatreal estate purchasecan be more profitable than renting. This is especially true in large cities.

Here are the main benefits of buying real estate for business:

there is no dependence on the lessor;
the company's status in the eyes of investors, partners and creditors increases;
Investing in real estate is good capital preservation.

Of the disadvantages, it is possible to name the high cost of the transaction. In addition, all worries about repairs and maintaining the premises in proper condition are now placed on the owner.

Conclusion

If you are just launching your business, or the amount to purchase real estate is not available, it makes sense to rent a space.

When a company is successfully operating and generating good profits, it is possible to think about buying. Here entrepreneurs have a choice of primary or secondary market. In the first case, the main advantages are new, modern communications, ergonomics and legal cleanliness of the object.

Commercial real estateon the secondary market - these are finished premises, the condition of which needs to be assessed.

In any case, when choosing to rent or purchase real estate on the primary or secondary market should carefully select options. It is better to entrust the process of search and selection to professionals. In this way you can save time, money, avoid a lot of problems and avoid meeting with fraudsters.