Should You Buy Or Rent A Business Space?

The decision to rent or buy your next business space isn't always an easy one, no matter what your financial situation is like. Here are some of the biggest things to consider.

Can You Afford the Investment?

Think of a piece of real estate as an investment in your business. You will, of course, have some additional assets tied into your location. But it could potentially be a source of additional income for you. That's possible if you buy the building and rent to other tenants or if you sell the building later. It's a better bet than paying off part of someone else's mortgage. But on the other hand, if you are able to keep your expenses lower now by renting a property, you can invest that money into ways to make your business better and bring in more revenue in the long term.

Are You Responsible for Repairs?

One nice thing about renting is that you aren't always responsible for repairs and the tremendous financial damage that a bad office incident can bring. But as long as you have great insurance, that shouldn't matter a lot with a property you own.

Do You Need to Cover Your Own Insurance?

You should also think about whether you have to cover your own building insurance. Yes, that is possible even for renters. If you don't need to pay for property insurance as a renter, that could be one less cost to worry about each month.

Do You See a Future in that Location?

A big question is whether you see a future in your current location or not. If your business is well established and you don't plan to grow in size, perhaps it's a great idea to look at commercial real estate. If you could potentially expand a lot in the number of employees, you might want to hold off. And generally, do you think that location will be where you want your business to grow for many years?

If the answer is no, you could still have a pretty good real estate deal. That's possible if the market is hot in your area and your real estate broker gets you a great deal on the property. Just consider it almost like renting and be prepared to sell and move on at the right moment. In short, your decision to rent or buy a commercial space will depend on how much risk you can afford to take and how much money you want tied into your location.

Contact a company like Mattox Realty for more info.