September 1, 2016
Do you own or run a business in the greater Miami area? Do you find yourself searching commercial real estate listings for potential office space? If so, there is one important question that an aspiring buyer must ask before making any decisions, “Should I lease or buy?” How urgently your business needs office space will certainly affect your decision. Because, timing plays the most critical role in the decision for businesses to either buy or lease commercial real estate.
If you choose to lease, you may not be getting full control over the property. Nevertheless, you can enjoy a large return on your investment with the right circumstances. When you lease a property, you aren’t required to throw down a huge initial payment which will allow you to maintain more capital. Furthermore, by not putting a large sum of money down, you will gain flexibility in terms of whether or not you will be able to proceed in certain business operations.
Although leasing may be the less popular decision of the two, there are a ton of benefits compared to buying for the right business. The biggest advantage is that you have total control over your money. And, along with keeping the majority of your capital, leasing a property also allows you to relocate at the end of the lease – if that is something that interests the buyer. However, cost is not the only factor one should consider when searching for office space. There are other important factors to consider which can make leasing the more attractive option. For example, the potential to outgrow the space. Or, dealing with the hassle of property maintenance. Also, allocating the down payment for other important aspects of your business.
In most cases with commercial real estate, it ends up being a smarter business decision to buy property to serve as an office space rather than leasing. This is not only because of the amount of money most businesses have at their disposal. But, also because of the numerous advantages that come along with owning rather than leasing. Additionally, thinking long term is almost always the most profitable route for a business owner. With this in mind, when purchasing property, there are two key aspects that need to be considered. 1) The amount of money you have in your bank accounts and, 2) the estimated value of the property.
If the property won’t appreciate over time, then there is no point in investing. Most of these properties will appreciate in value, This is due the consistent rise in real estate prices in certain areas of South Florida. A cataclysmic event is really the only scenario that could take place to undervalue a property, depending on the neighborhood. That’s why it is important to carefully watch the economy leading up to a purchase to make sure that your purchase is protected. When you own a property, you have the ability to sub lease your property to someone else and get back all of your money if you end up not having any use for it. It’s always good to know that you have that backbone to rely on, just in case.
Leasing or buying commercial real estate are both great options for businesses looking for office space. Sometimes both can end up being very profitable. And, in some cases, only one ends up being the right choice. Either way, the decision needs to be carefully analyzed and made with a full analysis of the situation. Are you are currently on the search to lease or buy commercial real estate in South Florida? Then you should check out all the available listings at Metro1.com!