Lease or Own? The question every business owner must answer.
The vast majority of businesses typically lease their space, reasoning that capital is best utilized being reinvested into the business rather than tied up in real estate.
At some point however, it may become financially possible, and responsible, to invest in real property. This is especially true for businesses that can clearly identify their space needs for the next 5-7 years.
For the business that is uncertain about its growth and still wishes to buy a building rather than lease, it is advisable to invest in property that can be partially leased to others.
These properties are generally referred to as 'multi-tenant buildings' and provide the greatest amount of flexibility to business owners. Also, because mortgage payments typically remain level and cease at some future date, the income generated from leasing a portion of the building could prove to be substantial.
As a cautionary note, remember that there are very real risks in owning property you expect to lease to others. For example, the market for properties similar to yours may become saturated and the supply of tenants may dwindle.
Investment and Income Properties
Investment and income producing properties (office buildings, shopping centers, industrial properties and apartment developments) and speculative land can be a sound long term wealth building strategy.
Please call me at 480-998-7998 to discuss investment and income producing properties. I will identify the best-suited properties, negotiate the lowest price possible and work with your financial and legal advisors in its acquisition.
Stephen A. Cross, CCIM owns CROSS Commercial Realty Advisors and represents business owners, healthcare professionals and corporate decision-makers in matters involving the lease and purchase of commercial real estate. Contact: 480-998-7998; email@example.com.
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