If you're a business owner, one of the decisions that you need to make is deciding whether you should buy a commercial property or if you should go with commercial real estate leasing. Unfortunately, there's no one-size-fits-all answer as to whether buying or leasing is right, as there are numerous elements you need to consider that will help you make a decision. Here are three important questions to ask yourself to hopefully help you decide if buying or leasing is right for you and your business.

Is Your Business Growing, Downsizing, or Stable?

If you're debating whether to buy or lease a commercial property, you need to consider what's going on with your business. If your business size is relatively stable, buying may be something you should consider. On the other hand, if your business is downsizing or growing, you may want to stick to leasing. You don't know what size of building you may need when your business starts to stabilize. Once your lease is up, you can change buildings if your business size has significantly changed.

Can You Qualify for a Loan?

Buying sounds great on the surface, but many businesses simply aren't in a position to buy. They may not have enough established business credit, may not have the income needed to show a loan, or may not have enough money saved for a down payment. If you find yourself in any of these situations, commercial real estate leasing may make more sense for you.

Do You Have a Unique Business Set-Up?

You also need to take into account how unique of a building you may need for your business. If you need a unique or one-of-a-kind set-up, you may not be able to lease the right space for your business. In this situation, it may make more sense to purchase a building and set it up so it works perfectly for your business needs.

It's not unusual for a business owner to be torn between buying a commercial property or leasing one. According to Real Capital Analytics data reported by the Wall Street Journal, in 2021, a new record was set for the commercial property sales industry, totaling $809 billion in sales. But, while buying is right for some people, commercial real estate leasing is the better option for others. If you're looking to lease a property, reach out to us today at Drifka Group to learn more.