In the third quarter in 2014, commercial real estate agents reported market gains, i.e. more business are renting property. If you’re wondering why this is, here are eight reasons leasing property is becoming more popular.
1. Gain a competitive advantage
The best commercial property for rent is in locations that get lots of traffic and will put your company in a popular location. A business’ location is essential to success, and if the location is accessible and visible to more customers, you can expect sales to increase and will have an easier time getting the word out to new customers.
2. No long-term commitment
Finding a retail space for lease means that you only have to commit for the length of the lease. This is an advantage over buying a property because it allows you to scope out the location and see how your business does there. If things go well, you can extend the lease, and conversely if you don’t think it’s the right spot for you, it’s only short term.
With so many commercial spaces available, you can find a place that fits within your budget and somewhere that has the ideal location. You can choose from a small or large retail space for rent, and depending on the landlord or company that provides the property, you might be able to negotiate fees to get the best rate.
4. No mortgage
A mortgage can be expensive and often involves a significant down payment. Many businesses, especially smaller or new establishments, can’t afford to invest in a property to own. Commercial property for rent usually doesn’t require a down payment and you can spend the money on other aspects of increasing revenue to improve your chances of success.
5. Less paperwork
Business owners who have offices they own have to file lots of paperwork related to taxes. If you rent or lease commercial office space, your tax returns will be simpler, easier, and faster to file. This saves you lots of time and headaches.
6. Don’t worry about the property value
Purchasing commercial property is a risk because the value might go down over time, which means you could lose money in the future if you try to sell it. If you choose a commercial property for rent, you don’t have to worry about the long-term value of the property because you won’t have to sell it in the future. If and when you decide to leave, you don’t have to deal with the hassle of listing it and finding an appropriate buyer.
7. Tax deductions
The government provides several opportunities for tax deductions for businesses that are located in a commercial space for lease. Any expense associated with leasing an office or upkeep of the property can be deducted from total gross income, and this can save you money long-term.
8. Choose an office space that meets your business’ needs
Lots of companies spend a significant amount of money installing relevant appliances that are needed for their business model. Restaurants have to install cooking appliances, which can be expensive to purchase and hair salons require sinks and chairs to provide their service. Leasing a property allows you to choose a space that has many of the features you need. Everything isn’t included for all properties though — don’t forget to check with your landlord about their policies regarding property upkeep and repairs for things like air conditioning and plumbing. Visit here for more information.