Whether you need a traditional office space or an inviting storefront, the right commercial real estate is essential to the success of your business. However, you might be wondering if you should buy or rent the space. Use this guide to help you make the right decision.

Buying

When you buy, you have equity in the property. That equity is immediate with an in-full cash payment, or it can be built up over time with a mortgage. You can utilize this equity to secure other types of financing, such as business loans, as the enterprise grows.

Commercial real estate often appreciates in value, as there’s always a market for business owners needing space. This means that you could conceivably get a high return on the investment.

Interest, depreciation, and certain expenses can be deducted from your business taxes and save you considerable money. If you have a property with more space than the business currently needs, you can rent out part of it for an additional income source.

Leasing

With leasing commercial real estate, there are lower upfront costs, and you’ll have more funds to channel into the business. The property owner handles repairs and maintenance on the building, so you save on upkeep as well.

You aren't committed to a mortgage, and if the business outgrows the space, you can more easily move into a better-suited location. The entire amount of the lease payment is an allowable deduction on your business taxes. If you're looking for space in a particularly competitive or hot real estate market, renting is a way to get established and save money before buying a more permanent property.

Buying and leasing both have their advantages, and much depends on your budget, property size needs, and location. Jeffrey Anderson Real Estate Broker is here to help. He offers commercial building sales and leasing services to clients throughout New York, NY. He’ll ensure you find the space that best supports your business operation and goals. If you currently own or rent commercial real estate, he can also help sell or sublet the property so that you can move into a new space worry-free. Call (917) 568-9642 to schedule a consultation or visit his website to learn more about his services.