When you’re about to lease or buy one of your fist commercial real estate properties, it’s a good idea to get acquainted with some of the basics and educate yourself as much as possible. Your broker and a Fort Lauderdale commercial real estate attorney can certainly assist you with this, and there are other steps that you should take on your own to become familiar with the process.
Decide whether you want to buy or lease
You first need to make a decision of whether you want to buy or lease a commercial property and what your goals are. Leasing makes a lot of sense for small businesses and newer businesses that don’t have the necessary capital to buy. More established companies may have the money to purchase a property, but the cost has to be carefully justified.
Think about the benefits and disadvantages
Between leasing and buying you’ll find numerous benefits and disadvantages and you have to consider as many of them as possible before you make a final decision. There is a significant loss of liquidity when you purchase a property rather than leasing it, and that liquidity may be better used for investing in the company. Also when you lease you may be able to have some of your expenses covered, while owning the property means that repairs and expenses are your obligation.
There are several advantages to owning commercial property
The advantages of owning a commercial property include the potential for a substantial capital gain if the property appreciates, the ability to lease the location for additional cash flow in the future if you move, the ability to hedge against inflation, numerous tax benefits including depreciation and mortgage interest deductions and more.
These benefits can quickly add up, and commercial real estate can be one of the most secure and stable investments when it is planned out properly.
Rely on the advice of experts
You’ll need to have several experts available to advise you on whether or not your potential commercial property is a good investment. You’ll need a good accountant, Fort Lauderdale commercial real estate attorney, and commercial real estate broker at minimum.
Your attorney can advise you during negotiations and assist with closing and many other parts of your deal, your broker can help you identify the properties that you can afford, and your accountant can explain the tax implications of owning versus leasing.
There are several things that you will need to review before closing on any commercial deal. Mark Schecter at Schecter Law can explain any of these areas to you and ensure that your deal is as favorable as possible. Contact Schecter Law today at (954)-779-7009 for commercial real estate advice.