Whether you’re starting a business or expanding your current one, you may need to look for new commercial real estate. You might know how many floors, offices, and windows you’d like, but you may not know whether to buy or lease the property. Here’s a guide to help you make an informed choice that’s right for your enterprise.

Buying a Commercial Property

When you buy a commercial property, you probably won’t pay the full cost upfront—you’ll put a down payment on the property and pay the rest over time with the help of a mortgage loan. This allows you to build equity, which you can use as collateral in future business dealings. Owning a commercial property may also entitle you to tax deductions. Plus, there’s no landlord to raise the rent each year, so you can enjoy consistent mortgage payments every month.

When you buy, the property becomes your asset. Should you decide to upgrade the property, these construction and remodeling projects will increase its value. You can also lease part of the property for additional income.

On the other hand, you won’t have as much flexibility when owning the property. For example, if your company starts to expand rapidly, you can’t leave when the lease is up—you’ll have to go through the process of selling the property, or you’ll have to build additions on the existing property.

Leasing Commercial Real Estate

One of the top benefits of renting a property is the freedom it affords tenants. Since the landlord is technically the owner, they’ll be responsible for maintenance or repairs. If the AC breaks down in the middle of summer, you won’t have to dig into your own profits to fix it. Leasing also eliminates the need to come up with a hefty down payment, and it allows you to leave and move to a new property whenever you need to.

On the other hand, if you find a space you really like, you might be disappointed when the landlord raises the rent the following year, which means you’ll have to agree to the new rent or move again. Also, if you make any improvements, such as a bathroom renovation, you’re raising the value of a property that isn’t yours, which doesn’t benefit you long-term.

Whether you’re interested in buying or leasing commercial real estate, you can trust NAI FMA Realty in Lincoln, NE, to make it happen. This company focuses exclusively on commercial properties, and they serve clients throughout Southwestern Nebraska. From market research to construction coordination, you can depend on their experienced team to provide unparalleled services. To learn more about their offerings, visit the website or call (402) 441-5800.