As a business, your primary goal is to grow and prosper. As you continue making your business bigger and more productive, at some point you will need to relocate because you need a bigger space of operation. You have two options in this case: leasing or purchasing a property space. Either method will help you go about getting your commercial space requirement. The right choice will depend on your current finances and business needs combined with where you want to take your company in the future.

To find the best solution, it will help to consider the advantages and disadvantages each approach offers and how they relate to your business situation. Here are a couple of the advantages and disadvantage you should consider.

Buying Commercial Space


More space, more income. Buying a property will give you more space for future expansion, and will give your business a permanent location. This will help your company build its location value to your customers. Plus, there may be extra space available you can have rented by other companies, which will generate income and may even cover some of your mortgage costs.

Total Control. As the owner, you can do all you want with the building. You may alter, improve, expand, and enhance anyway you want. This control can positively impact the reputation of the building and your business operation as well.


Initial cost. Purchasing a building cost a lot more than just leasing a space. You need to pay for property appraisal, and pay a large down payment for the mortgage. In turn, you’ll need sufficient extra cash available for this investment.

More responsibility. Owning a building means being responsible for all aspects, including repairs and maintenance and financial management. This takes a great deal of extra time from you and lessen your focus on your business.

Renting Commercial Space


Quicker, and more choices. In the majority of markets, there are more leasable commercial spaces than buildings available for sale. You can easily find a rental property on Mcgrath to serve as your next base of operations. Also, the leasing process takes a very short time than purchasing, so you can move your business pretty easily.

No down payment. The cash outlay for leasing a space is significantly lesser than the deposit required when purchasing a property. That has a positive impact on the cash flow, and the reserved money in your company, which you can use for other meaningful facility upgrades.


Little Control. With most rents, you have very little control over necessary maintenance, improvements, repairs, and other factors. In these cases, you need to rely on the building owner to make the decision.

Rent may increase. Most rents today are set up to allow yearly rent increases, while others increase cost when your rent expires and needs to be renewed.


There you have it. As you can see, there are advantages and disadvantages to both buying and renting a commercial property for your business. However, by knowing and evaluating them based on your requirements, you’ll be able to make the right decision.

By Eddy

Eddy is the editorial columnist in Business Fundas, and oversees partner relationships. He posts articles of partners on various topics related to strategy, marketing, supply chain, technology management, social media, e-business, finance, economics and operations management. The articles posted are copyrighted under a Creative Commons unported license 4.0. To contact him, please direct your emails to

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