If you are a small or medium-sized business owner, you may have asked this question yourself several times, whether to buy or lease a commercial property or an office space. As you get close to opening your small business, several factors may decide whether to buy or lease a commercial space.
Why buy a commercial property?
What are the factors that support buying a business facility instead of leasing it? Read the following to know more about why you should buy a commercial facility.
Do you want to control the property or make substantial renovations or additions to the property? Suppose, you want to change the business hours or anything else about doing the business. You need to seek the landlord’s permission to make those changes. If you own the property, you will have no one looking over your shoulder.
For retail and service businesses, location plays a significant role. So, if you have set up your business in a preferred location, you are less likely to agree to lose it due to escalating rent, or maybe the landlord needs the property for another purpose. Owning the property should free you from these accountabilities.
You may want to set up an office in an area with appreciating land values. Chances are that the values will keep on appreciating rapidly. So, you better own the property instead of renting it. You may gain if you can spot the real estate before the prices jump.
Purchasing a property comes with tax savings but several factors may come into play like how profitable your business has been or how long have you been in this business. Based on these factors, purchasing a property may cut the tax bill.
Commercial real estate has been a source for entrepreneurs to build personal wealth, and buying a property makes sense. Besides, a well-financed property you purchase will free up the working capital by reducing the monthly burden of rent.
Why should you lease a commercial property?
Are you in a dilemma about whether to consider office space for rent in Kelowna? Here are a few factors that are relevant to leasing or renting a commercial property for your business. What is your present cash flow? If you are planning to start a business and need a space for your office, a commercial lease in Kelowna is the best decision from the perspective of cash flow. Want to know why? The up-front costs associated with the lease are less than what you need for purchasing a property. All you need to spend is the security deposit and the first rent payment compared to the lump-sum money you require to pay for the down payment.
You are not ready to give up on the flexibility to move as you may not be sure whether the current facility can serve your future needs. Your target may move elsewhere or you may require more space owing to the expansion of the current workforce.
The credit rating of your company may not favor seeking a mortgage. Maybe your business is rather new or you may experience a host of financial difficulties. Naturally, the lenders may not support your wish to get a mortgage. With this financial situation, seeking commercial space for lease in Kelowna is the best option to choose.
You may not get a suitable location to buy a commercial space and those that you find may be available for lease only.
The business facility may be located in an area with declining real estate values. Even if you find a property to buy, the real estate value in that area may be stagnating. That way, a commercial lease in Kelowna makes more sense. Emil Anderson Properties is the company to reckon with when you seek commercial space for lease in Kelowna. They have been into leasing and renting office spaces for a pretty long time, so trust their expertise and you are good to go.
Whether you decide to lease or buy when it comes to Kelowna commercial real estate, remember to appoint a lawyer to review the contract carefully to avoid nasty surprises down the line. You need to get familiar with the terms of buying and leasing and focus on those aspects of the contract that are relevant to your business needs. Apart from the cost of leasing and buying, there are expenses related to furnishing, renovating, and purchasing new machinery. Keep your focus on running the business swiftly and analyze your situation to make the best of the opportunities.