Although buying a commercial property can be a good investment, and can result in significant profits when you sell, there are numerous benefits to leasing commercial property. Overall, being a tenant means you save time, money and hassle – and you can be more flexible in terms of where you are located.
The main advantages with leasing commercial property as illustrated above are outlined below:
Flexibility: All businesses needs change over time. The flexibility you get with leasing commercial property rather than buying it makes it much easier to relocate to new premises if you need to. If you own a property and need to move elsewhere, you will typically experience delays with “back to back” property transactions, where you’re selling one property in order to buy another. If you’re leasing, none of these challenges exist.
Lags and Expense: If you’re buying or selling a commercial property, there are usually delays with things like rates clearances, which can be hugely frustrating. Leasing a commercial property means you have none of these frustrations in terms of time lags and expense.
Defined Budgets & Lease Periods: If you’re renting commercial property, as the tenant you can usually determine the length of your lease commitments. What’s more, when the lease is nearing expiry, you can review your business and identify future needs that you may have, such as bigger premises or moving to a building in a different location.
Growth or Downscaling: If you lease commercial premises, growth or downscaling can be easily accommodated without having to go through the time consuming and costly process of property disposal.
Property Management: As a tenant, the maintenance and management of your commercial premises is handled externally by a management company or landlord. Since you’re not outlaying money and resources for this, you can reinvest excess funds directly back into business rather than in maintaining your business premises.