Buying VS Leasing Commercial Property

Looking to go into business? Maybe you have a growing start-up and you’re ready to branch out of the home office into your own space. Or perhaps you already have a successful venture, and need the extra room as you expand.


When searching for commercial property, it is important to remember that every business is unique and has its own individual set of requirements. Whatever your business needs may be, you will have undoubtedly thought about what type of property arrangement will work best for you. Essentially, there are two options. One is to purchase a commercial building upfront, and the other is to lease a premises.


There are pros and cons to either buying or leasing commercial or industrial property in Perth. Purchasing a commercial premises gives you a high level of control. You can alter the floor layout as necessary, undertaking minor renovations, redesigning the fitout or even making major extensions if required. In addition to being able to essentially custom-build your own office space, you may also be able to take advantage of the tax benefits of buying commercial property, such as claiming depreciation on the fixtures and fittings. Be aware that purchasing a commercial or industrial building may require an initial financial outlay to cover the deposit and any renovating or modifications you may wish to do to the premises. Bear in mind too that it may take some time to sell should you wish to branch out and move on up. This in turn has the potential to tie up funds that you could potentially need to relocate to a new property.


Leasing, on the other hand, gives you a certain degree of flexibility and financial security.  Regardless of whether you opt for a short or long term lease, renting a commercial premises will allow you to budget accordingly and fix your leasing costs without being exposed to fluctuating bank interest rates.  There are potentially lower overheads when comparing the monthly outlay of leasing with ongoing mortgage repayments as well. In turn, this should free up extra funds to invest back into your business. It also gives you the flexibility to scale in order to match your business’s requirements.


In the end, it all depends on where your business is situated in its lifecycle. Purchasing a commercial property is often popular with businesses that are already established. Leasing a property, on the other hand, is often better suited for emerging or start-up businesses that are still uncertain of what they may need in the future. A commercial lease is on average three to ten years long, allowing for more flexibility in terms of building size and location as the business grows.


For more information on commercial properties and whether to lease or buy a premises for your business, contact Altegra Property Group, your commercial property professionals, on 9221 1966.


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