Companies that are looking to acquire commercial space in Pennsylvania or elsewhere in the country must decide whether it is more beneficial to rent or to buy it. In many cases, a company’s budget will be a primary factor during the decision-making process. Those who choose to buy a commercial property may need to borrow a significant amount of money to do so. Furthermore, businesses that own commercial space will need to spend money on maintenance and other costs.
For companies that don’t want to make such a significant upfront investment, leasing an office building or warehouse may seem to be the better option. However, it is important to consider that a rent payment may be more than a mortgage payment. It is also important to consider that companies can rent an unused portion of their building in an effort to offset a mortgage payment.
Businesses that decide to own a building outright may be entitled to tax breaks that renters aren’t able to benefit from. One primary benefit of leasing commercial properties is that business owners can focus more on running their companies and less on managing the properties themselves. If a company needs to relocate, it can be easier to break or terminate a lease than it is to sell the building.
A company owner who is looking to buy or lease commercial real estate may want to do so with the help of a real estate law attorney. An attorney may be able to review a lease or purchase contract before it goes into effect. If there are any disputes before or after the transaction closes, a legal professional may be able to protect an owner or tenant’s rights. Real estate disputes may also be resolved through negotiated settlements.