Kari Nealeigh - The Complete Guide to Buying Commercial Real Estate

CHAPTER 7 Don’t Be Afraid of Owning aid of Owning Instead of Leasing

There are benefits to owning if your company is ready to take that step and has a long-term plan that fits that vision. Several factors go into this decision, some out of your control. How your local market is looking, what is available that fits your needs, and the cost comparison of renting versus buying, shape your choice. Commercial properties are long-term assets that almost always hold their value and eventually increase it. That’s why it makes sense for business owners to invest in their space when the time is right.

HERE ARE THE PROS AND CONS OF OWNING YOUR OWN OFFICE SPACE

You Build Your Own Equity

You do this with your monthly loan payment. No longer are you building equity for a landlord who is already making money off you. Part of your monthly payment goes toward paying your loan. When you refinance or sell the property, you take the difference between the loan amount and the value of your property as your company’s equity. You get so much more upside in this situation, rather than giving that upside to your landlord. The property will most likely gain value. This is the first reason many business owners start to look at a purchase.