Depending on your industry, you may need office space, manufacturing space, or room to store inventory or equipment. Commercial metal buildings are exploding in popularity to meet this demand for space in a convenient, secure, and effective way. Whether you purchase or lease a property to put your commercial steel buildings on, using prefab commercial buildings to increase space for your company will be the easiest, most secure option as well as the most cost-effective.
Buying vs. Renting: What’s the Difference?
Buying a commercial building means that you own it outright. If you rent or lease the building, you are using the commercial building for a specific period of time. Depending on your specific situation, you may buy the building and place it onto land that you rent, in which case you would own the building and not the land. In this situation, it is always advisable to use a commercial steel building because it will be possible to move your building at the end of your lease.
Factors to Consider When Deciding to Buy or Rent
As a business owner, deciding whether to buy or own commercial property is a significant choice that will have serious long-term consequences. It is important to consider how this decision will affect your finances, responsibilities, and options both in the present and future. You know you have to have commercial space to facilitate growth. The important thing is that you finance a practical space that is right for your specific situation.
How Buying vs. Renting Effects Cash Flow
In the short-term, buying a commercial building costs more. Unless you finance your building or take out a loan, the full commercial building price will need to be paid at the purchase time. If you are pushing your budget limits to purchase the building, this could create a cash flow problem early on when you have to buy more materials or inventory. Renting does not have the same kind of upfront costs that buying does, but you will have to consider that this is a monthly bill that your company will be responsible for no matter its financial situation. In the circumstance that your business would happen to close, you would still be responsible for the remaining rent under your lease agreement.
Location Matters When Choosing to Rent or Buy
One of the biggest reasons a business owner may choose to rent or lease a commercial space is commercial building prices. If you really want or need to be in a specific location that you cannot afford to buy land in, the next best option may be to lease or even lease to own a property in that area.
Another reason that you might consider leasing is if you are unsure that you will want to remain in a specific location for the long term. Buying is a commitment, so you should be sure that you will want to run your business in that particular location for years to come.
Would Leasing Give You Enough Autonomy?
One of the great things about buying a commercial property is that it gives you almost complete autonomy. When you rent a property, while you may not have to pay for repairs, you will need to wait on your landlord to have them done, and you won’t be part of the decision making process about how they get done. You will also not be able to capitalize on having an additional stream of revenue by renting leftover space, and you won’t even have control over who your neighbors are if your landlord chooses to rent out additional space. Another thing to consider is that you may not be allowed to remodel or reconfigure the building to suit your business’ needs if you do not own the property.
Buying Commercial Space is a Better Long-Term Value
If you choose to rent commercial space, you will have to renegotiate your lease at the end of every leasing period, and the rent almost always goes up with every new lease. Should you choose to move, you will have to consider the impact that will have on your traffic flow and the cost of some rebranding for a new location.
- Buying Commercial Space Builds Equity
When your company owns the commercial property, it gives you a chance to build equity as the property increases in value over time. This will even provide you with collateral for future investments.
- Buying Commercial Space Provides Tax Deductions
When you own a commercial property, you are able to claim more tax deductions and write-offs, including mortgage interest, property taxes, and tax line items. If you are a non-profit, you get more tax deductions when you own your building than you do if you choose to rent or lease a space.
Buying a Commercial Metal Building is Simply the Best Solution!
Whether you choose to buy or rent land, your best bet will always be to purchase prefabricated commercial metal buildings because they are made of steel, making them tough and durable, which means that they can last a lifetime. Buying a steel building is also much more cost-effective than renting commercial space and comes with far less maintenance and upkeep.
Purchase Your Own Commercial Steel Building Today!
Prefab steel buildings are an excellent investment for your business. They provide you with a stable location and are a sound investment for many years to come. They are durable, resilient, and extremely cost-effective, particularly when compared to competing structures.
To get the highest quality metal building available, call Boss Buildings today at (336) 673-3065. We offer free delivery and installation, the best industry lead times, and the best prices possible, guaranteed!