The choice between leasing and purchasing commercial real estate depends on a number of variables, including the type of business, location, and financial status. While leasing gives you more flexibility, lower up-front costs, and maintenance responsibilities, you have less control over the property and no opportunity to build equity.
Contrarily, purchasing offers long-term security, tax advantages, and the possibility for gain, but it necessitates a sizable upfront investment and regular maintenance costs. However, SBA Loans only require a 10% down payment as long as the buyer’s business occupies over 51% of the building, which can help with the up front costs.
The choice of whether to purchase or lease commercial property ultimately comes down to the particular requirements and objectives of each business owner.
If you would like a lease versus sale analysis for your business in Boise or Reno, please give Stark Accelerators Commercial Real Estate a call at 775-825-4400.