If you’re ready to start your business in the Tampa area, one of your first questions will be whether you should buy or lease office space in the area. Just like everything, there are positives and negatives to both options. As long as you know the facts, you’ll be equipped to make the right decision. Here are some things to consider when deciding whether buying or leasing is a better option for you.
How much cash do you have now?
When buying a commercial real estate property, you’ll typically need to offer more cash up front than if you’re leasing. While a lease typically requires at least one month’s deposit, buying the property will mean you not only have to pay a percentage of the total cost as a down payment, but also costs surrounding inspections and other fees. Most commercial lenders will require as much as 30-50% down towards the purchase of a commercial property.
What are your plans for growth?
If your business has stable, steady growth that you can plan for, you may be able to make a sound decision in purchasing a property that fits your needs. This is a great way to build a space you can make your own, and to make your employees feel at home in their work environment. On the other hand, if you can’t be sure how quickly you’ll grow, entering a lease helps keep your options flexible if you need to move on to a bigger space down the road.
How comfortable are you with variable costs?
Entering into a lease agreement for a specific period of time means that your costs may fluctuate when that period expires – it all depends on rent payment escalations. Buying an office space means that you have an opportunity to get a fixed rate loan, so your payments will be more consistent over time.
There are pros and cons to both leasing and buying commercial real estate, and the most important thing is to do what’s right for you and your business. One of the benefits of working with me as your real estate professional is that we sit down for a free consultation first thing. We assess your specific business needs and I assist you in making those important decisions before we start our search.
If you need help navigating commercial real estate opportunities in Tampa, contact me!
image: Aaron Escobar
I highly recommend you must read the eBook on what you need to have for starting a business in Tampa, I believe you’ll get a lot out of it. If you haven’t claimed yours, go and grab it now for free! See you inside – I can’t wait to start working with you! We’re better together!