Whether to Rent or Purchase Commercial Property

If you’re looking to open a business like Frank Haney or have some other type of commercialized need, you may be wondering what your best option is pertaining to a property. Commercial properties can be a great option for those who want to run a business and have their own set location. The property might be in a mini mall or it might be in its own empty lot that needs to go under construction in order to create the actual location. One of the questions you might want to carefully consider would be whether to rent or purchase the property that you need for your business.

Both renting and owning property have their perks and disadvantages. Knowing what each will offer to you as a business person will enable you to make a solid decision on what’s best for you. When it comes to renting property, you will not have to worry about property tax or the underlying concerns that property owner’s face. Some of these concerns might involve water lines, electric problems and even something as simple as waste removal. Renting is often done on a contract basis, so you will not get locked into a mortgage that takes decades to pay off. If you’re a brand new business owner, renting the commercial property might be the best option for you.

On the other hand, buying a commercial property can be beneficial to established businesses that want a good location they can depend on regularly. When you rent a commercial property or building, the actual owner can easily end the contract once it is finished. This puts you and your business out on the street, while owning a property does not pose this type of risk. It might be more worth your while to find a good mortgage rate and simply buy the property that you need.

Whether you choose to rent or purchase commercial property, it’s vital that you have something that suits your business needs. If you can only afford to rent a property, this may be the best option for you until you can afford something more. If you feel that buying commercial property will enable you to meet your business goals, this is obviously what you’ll want to consider. The key is to find a good property in a great location so that you can be successful in terms of running and operating your very own business.

Another highpoint in all this real estate action was the fact that many investors were interested in industrial properties to purchase, not lease; eschewing the high cost of leasing that in some cases was approaching $185,000 per square foot – ouch! So if you’re asking yourself how long these blue skies and green lights will continue, the usual suspects are suggesting (maybe predicting) that available metro Washington D.C. land and space will tighten up over 2015 and several years beyond.

In the meantime, thanks to several downtown D.C. revitalization initiatives in the metro area, the shovels are out and apartment complexes and other new multifamily developments have been penciled in. And that includes a 326 unit luxury apartment community. One of the key factors in all this rush for developers and investors to get a piece-of-the-action, has to do with the stock market volatility. The folks with the “bucks” are pouring more money into real estate which, in turn, is driving down capitalization rates.

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