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Commercial Space Rental vs Buying: Which Is Best for You?

by Business Highers
commercial space rental

You likely have a lot on your mind when you’re running a growing business. While you’re focused on your business, there may be another question: should I lease or buy commercial space for my business?

Many new and growing businesses lease commercial real estate rather than buy it. Though if you choose to buy, you may have more options for customization that help your business thrive.

Check out our guide to find out. Read on to learn more about commercial space rental vs buying and which option may be best for your business.

Commercial Space Rental

Renting commercial space has its own set of pros and cons. On the plus side, businesses can enjoy having a presence in a larger, more established commercial area, as it can open them up to a more extensive customer base.

For businesses that need more resources or need to expand their operations, renting Industrious Co Working Space allows them to do so without the significant financial burden of doing so with their own space. On the downside, leasing retail space can be more expensive in the long run, and there will usually be restrictions on what you can and can’t do in the area.

Renting commercial space can also put you at the mercy of a landlord, as you may have no control over when to renew or what changes may happen to the space.

Buying Commercial Space

Buying commercial space provides many advantages. Generally, purchasing retail space involves lower operating costs than leasing space. Owning property also increases financial security as the business owner will not need to worry about significant rent increases or lease terminations.

Owning commercial space can provide many tax benefits for the business. For instance, income from leasing may be tax deductible, and with ownership comes the right to depreciation and capital gains tax benefits.

Buying commercial space can have its drawbacks. The business owner commits to a long-term financial responsibility when owning retail space. Also, purchasing a commercial building can be lengthy and expensive, as there are many fees for inspections, appraisals, title searches, and closing costs.

If the business does not use the space, or the area is unsuitable for the intended purpose, the business owner will be out of a significant investment.


Before making any choices, you should figure out how much space your business needs and think about its future needs and growth potential. You should look at the budget for the business and the expected monthly costs of running it.

When buying or renting an office space, you should also think about the local market rent, which can change based on the location, the state of the area, and the amenities it has. When looking at possible industrial spaces, the location is also important because it can affect how well the business does.

Also, when renting, you need to think about how flexible the owner is, how long the commercial lease might be, and how these things might be different in different places.

Consider These Pros and Cons

The decision between buying commercial space or commercial space rentals depends on your individual finances and needs. Buying an office can offer more stability but requires more commitment and capital.

Renting has the flexibility of lower upfront costs and a simpler-to-exit strategy. Consider the pros and cons of each and decide what is right for you.

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