All growing small businesses may someday be faced with the question of leasing versus buying office space. This question has many pros and cons. With ever-changing office vacancy rates and market fluctuations, it’s uncertain what the future may bring. A small business owner needs to carefully weigh the pros and cons of leasing or buying office space.
First let’s consider the advantages of owning property. Locking in your commercial mortgage long-term can give your business clear, fixed costs. The associated costs of owning and running a commercial space can provide expense deductions in the form of mortgage interest, property taxes and other items. Owning your office can also offer the advantage of renting out extra office space adding another source of income. The prospect of owning commercial space and having the property appreciate over time allows the owner to sell eventually and fund their retirement. (more…)