To Own or to Lease: Which Property Listings Are For You?

The time has come and you’re ready to move forward with your business operations. You’re ready to look at property listings and find a place to set up shop. But what are you looking to do? Buy or lease? Both options provide advantages and drawbacks, so it’s important to weigh the options carefully.

Probably one of the best points to consider is how long you expect to be there. Is your business going to grow and eventually need a larger space? Do you plan to hold on to this building and location for as long as possible? Owning the building that you operate out of offers more stability and control, in terms of planting roots for the long haul.

Looking at property listings, leasing has its appeals, too. Leasing a building is a great way to test out an area. For new businesses especially, looking at property listings for lease can be a chance to look at the differences between areas for traffic and clientele. Obviously, you want to be happy with the area where your business is rooted, but it can be difficult to tell how things will shift and what conditions will favor your business. Leasing locks you in for a shorter period of time than buying does. When you lease, you’re usually less responsible for maintenance and general upkeep of the property. Every landlord is different, so it’s important when looking at property listings to find out what comes with the property.

On the other hand, buying a building is an investment. While it’s a heavier responsibility, you also have much more freedom as an owner. Remodeling means that you don’t have to stick with exactly what the building is and looks like. You’re the one footing the bill for those costs, but you have the freedom to do it.

As an owner, you’re also paying to own something. Leasing doesn’t ever amount to ownership of tangible property (unless you lease to own), so it’s less of an investment and more of an expense. If you’re capable of committing to a property indefinitely and you understand the various expenses associated with owning property, it’s a wise investment. 

Regardless of which types of property listings are right for you, explore your options. Talk to commercial real estate agents and people in the economic development office to explore what possibilities there are for you and your business.