3 Benefits of Leasing Commercial Property

“What are the benefits of leasing commercial space instead of purchasing the space,” is one question that every commercial real estate agent gets nearly every day.  Of course, every client is different, but for many people leasing is the best option they have.  This article will showcase three benefits of leasing commercial space instead of purchasing space.


  • Keep the Cash Flowing – One of the biggest reasons for a business of any size to lease a commercial building instead of purchasing a commercial property is because it won’t tie up a ton of cash.  When leasing a business the down payment is usually just a month or two of rent, but then a business purchases a building they often have to come up with a ton of money out-of-pocket up front just for the down payment.


Leasing commercial space instead of purchasing usually doesn’t require the renter to spend any money on leasehold improvements.  Someone who buys a property will need to fork over all the renovation cash on their own or they will be required to take a loan out to cover the construction costs.


Business owners who lease commercial space instead of buying the space also save money on insurance as well.  A property renter will simply need to carry liability insurance while a buyer will be required to get liability insurance as well as insurance to cover the property.


  • Keep the Eyes on the Business – Of course saving money is good, but making money is even better.  Another benefit of leasing commercial space instead of buying the space is the fact that a business owner who leases can spend all their time worrying about their business and not the up-keep of the building.


An owner who leases their space simply calls the landlord if a leak pops up in the roof, if the plumbing breaks, or if an AC unit dies.  This allows the owner and their managers to focus on running the business and not wasting time lining up bids from contractors.


  • Keep Only the Space they need – Purchasing a commercial space means that the business is making a long term commitment to that particular space.  This often means a company has to buy a space that is too big for their current needs so they can grow into the space.  Or if the company buys a space that fits their current needs exactly, they may find it hard to grow in that space.


A business owner who leases their commercial space can pick-up and move at the end of their lease or in some cases they can re-negotiate for a larger space in the same building or complex.     Or conversely, if the business goes through a down period they will be able reduce costs by finding a less expensive place to lease.


Overall the choice between purchasing a commercial space and renting a commercial space will depend on the company looking for the property.  But in many cases there are a lot of benefits to leasing a commercial space.

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