As a businessperson, you might dream of owning a retail store or office building. After all, if owning your house is a better investment than renting, the same must be true of commercial real estate, right? However, there are some significant differences that often make commercial leases a better option, reducing costs and giving you the flexibility to make your business as successful as possible.
4 Reasons to Opt for a Commercial Lease
1. Lower Up-Front Costs
Buying commercial real estate usually requires a minimum 10% down payment, not to mention the closing costs and the expense of renovating the property. A commercial lease, on the other hand, usually just takes a security deposit and the first month’s rent, and the landlord might even customize the space for you.
2. Tax Benefits
Leasing a property is usually much cheaper than buying, but even if you get a great deal on a space, the tax benefits of renting usually outweigh the savings. While you can deduct all your rent payments every month, only the interest paid on your business’s mortgage is deductible if you own the place.
3. Lower Maintenance Costs
Landlords are generally responsible for most maintenance tasks, and if the building is starting to fall apart, renters can simply move to a new, more modern space. When you buy a building, on the other hand, you’ll be stuck with all the upkeep responsibilities and expenses.
4. Increased Flexibility
Maybe the location was great when you moved in, but traffic patterns have changed. Or maybe there’s a hot new commercial area across town you’d love to be a part of. Businesspeople who rent can simply move when their commercial lease is up, while building owners are tasked with selling their property first. Not only is this a headache, but you could also suffer a significant financial loss if the same reasons you want to move make the property unappealing to other buyers as well.
Since 1951, Winmar Corporation’s commercial real estate professionals have been helping Lexington, KY’s business owners create stunning office environments sure to impress clients and employees alike. They operate two of the city’s most distinguished office buildings, combining historical charm with technological features every modern office needs. Visit their website now to browse their properties, or call (859) 254-5755 to find out why a commercial lease is right for you.