Commercial Space: Leasing vs Owning

Many people think of McDonald’s as merely a fast-food chain, but the company actually owns commercial space, and they are some of the best real estate in the country. McDonald’s realized early on that the biggest money wasn’t in selling hamburgers; it was in buying up commercial space choice properties. The company then built a restaurant on each site and leased it to a franchisee, who ran the eatery and paid rent to the corporate office. This model remains intact today.

Of course, many small-business owners can only afford to lease commercial space when they’re just starting out — and that rent often consumes a large part of their monthly budget.

To determine whether leasing or buying commercial space would work better for you, consider three big advantages of each:

Leasing

1. No down payment is required. You typically need a down payment to buy commercial space, which can take a huge chunk out of your startup budget or cash reserves. By leasing, you can invest that capital in growing your business — and keep the option of buying open for later, when your finances are stable.
2. Repairs are handled by property management. When you lease commercial space, if the air conditioner breaks (as it eventually will), all you’ll have to do is call the property manager and wait for someone to show up and fix it. If you own that same space, you’ll be forking over thousands of dollars on repairs every time something major fails.
3. You have short-term options. As your business expands, it may grow out of its space. By signing a lease of one to five years, you’ll have the option to move to a new spot as your needs change. Leasing also gives you the opportunity to try out an area of town to determine whether it’s a convenient location for your clients and staff.

Owning

1. Property is an investment. As McDonald’s learned, real estate is an investment that pays off over time. In fact, given the low interest rates and prices of late, it’s never been a better time to buy commercial space.
2. You can save money. Although a down payment can tax your budget, buying a property gives you the option of refinancing and eventually paying off the mortgage balance (after which there’s no monthly payment). Because rents are subject to increase over time, owning can be better than leasing in the long run.
3. You are your own landlord. When you own a space, you have control over what you do to it. If you want to paint the walls purple or update the windows and doors, you can — without needing anyone else’s permission. This freedom can come in handy as your business evolves.

                                       9090 F St Omaha, NE 68127 40K SQ FT

                10064 So 134^th ST Omaha, NE 68138 150K SQ FT

      Dam Building 156th and Gold Coast Drive Omaha, NE 68138 150K SQ FT

Give us a call for more information regarding our available commercial space.

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