Is it Better to Lease or Own Commercial Property in Will County?

 In Buyer, Tenant, Video Tutorials

Is it Better to Lease or Own Commercial Property in Will County?

In this 4 minute video tutorial, Chris Condon helps you answer the question, Is it Better to Lease or Own Commercial Property in Will County?

A common question for many business owners is whether they would be better off leasing or owning property here in Will County. While each choice offers advantages, they also offer challenges and disadvantages for your business.

While it’s difficult to give individual guidance for such a choice in a video blog, and since every situation is unique, there are a few guidelines that are fairly common. With that in mind, here are some things to consider:

The advantages of leasing commercial property may include:
  • Flexibility – Since you don’t own the property, you can move or expand when your lease expires, and as the needs of your business requires.
  • Property management – is the responsibility of the owner, leading to fewer headaches and challenges.
  • Lower costs – While you may not profit from the payments of the property, you have minimal maintenance costs or property management responsibilities.
The drawbacks to leasing commercial property may include:
  • Instability – To some extent, you are at the mercy of your landlord, who may raise your rent, choose not to renew your lease, or sell out. The timing of any of these could create huge challenges for you.
  • No equity – The return on investment for your monthly rent check, along with the equity in the property, goes to someone else.
  • Taxes – There are few to no tax benefits to leasing as there commonly are for owning property.
That advantages of buying commercial property may include:
  • Stability – When you own a commercial property for your business, you don’t have to worry about the landlord raising your rent, terminating your lease or selling it from under you and possibly leaving you hanging.
  • Improved ROI – The equity in your property belongs to you and, as the value grows, so does your wealth. There are also tax advantages for owning over leasing that may improve your bottom line.
The drawbacks to owning commercial property may include:
  • Increased responsibility – Any problems that come up are solely yours to deal with, from maintenance to making improvements, as well as paying taxes and dealing with governing bodies.
  • Cash flow – might be hampered. With your capital tied up in your property, it may be harder to find the cash to invest in equipment and personnel needed to grow your business.

These, and more, are all important to consider and the video goes into them in more detail.

As a broker with John Green commercial, I’m always available to help you examine the benefits and challenges presented when you’re trying to decide whether to lease or own commercial property here in Will County. Feel free to Contact Chris Condon for answers to your questions or a free consultation today.

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