Buying vs Leasing Commercial Real Estate
Determining the right fit for your client.
3 min read
When it comes to buying or leasing a property, your client may face a series of questions to determine which is the right fit for their business. Both investment decisions come with their own set of advantages; however, taking the time to weigh both options carefully will make the process that much easier.
Being able to lease or buy a commercial property is a massive accomplishment for any business owner and should be carefully planned out. Below are some key considerations that will help you and your client navigate this investment decision with ease.
When to Buy
Buying a property outright is typically the go-to choice for business owners looking to expand their business. It allows your client to build their wealth, all while ridding them of leasing restrictions that may be holding them back. Finding the ideal commercial property can be hard to come by, especially in a highly competitive market. Investing in property fuels a better return on investment (ROI) whether your client is looking to hold the property for the short or a long term.
When investing in a commercial property, it is essential to keep changes in the market, such as a rise in interest rates and stability and protection for your client in mind.
When to Lease
If your client has a small business or is looking to enter the market, leasing property instead of buying it may be the best fit for them. Leasing allows for business flexibility for those who are just starting out, downsizing, or unsure of where the future of their business might lead. Leasing will encourage your client to focus on their business needs first, without the potential hassles that come with owning a property. If your client is not generating enough working capital, this may also be a valid reason to consider leasing instead of purchasing for the time being.
When leasing commercial property, your client must keep options for renewal, renovations, and tenant responsibilities in mind.
Whether your client chooses to buy or rent a commercial property, taking the time to consider the pros and cons of each investment decision is key. If done right, it will help mitigate financial loss in the future, thus helping their business goals are met and the possibility for further expansion to become a reality.
Reference
Is it better to buy or lease commercial real estate. BDC.ca. (2020, September 12). https://www.bdc.ca/en/articles-tools/money-finance/buy-lease-commercial-real-estate/buy-or-lease-my-commercial-space.
About Royal LePage Commercial Westhaven
Our commercial real estate industry and segment expertise coupled with Royal LePage’s national platform and integrated systems provides best-in-class real estate strategies and a competitive advantage that can’t be beat.
We help businesses identify opportunities and maximize their return on investment with actionable goals, centralized support services and a strong commitment to customer success. Our national partnerships help us establish, guide and execute successful business investments.
We offer commercial real estate agents a professional environment, focused 100% on commercial real estate. Agents can expect unlimited market boundaries to build their business without the interference of a heavy corporate structure. In addition, agents will be able to access Royal LePage’s national referral network of over 18,000 agents to develop more business in their target markets with incoming leads generated daily. The brokerage provides agents a suite of services including marketing, promotional, networking and professional development needs.
Innovation and service excellence have developed and propelled the Royal LePage brand since 1913. When you join Royal LePage Commercial Westhaven brokerage, you have the backing of one of the most powerful commercial real estate services company in Canada—Bridgemarq Real Estate Services Inc. (formally Brookfield Real Estate Services Inc.). Bridgemarq is a leading provider of services to real estate brokers and agents. They are an affiliate of Brookfield Business Partners, a business services and industrials company focused on owning and operating high-quality businesses and is listed on the New York and Toronto stock exchanges.