Finding the right location for your Philadelphia business is not easy. First, you must find something that fits your budget in the right location. You also have to make sure the space suits your needs and will work for your company operations. Once you find the right place, you may want to sign on the dotted line and move forward as quickly as possible, but this is not always prudent.
Before you do anything, you may want to think carefully about whether you should lease commercial property or buy it. The right answer depends on factors unique to your situation and specific to your real estate market. There is a lot at stake for your company, and it’s prudent to give your actions a lot of thought before you sign any type of contract.
Should you lease?
In some situations, it is in the interests of a business to lease space for a company. The following questions may help you determine if leasing is the best choice:
- Do you need to conserve and closely monitor your company’s cash flow?
- Is your credit rating too low to buy property?
- Are you unsure of what area you want to be in long-term?
- What are the long-term operational goals for your business?
The answers to the above questions can help you determine if it’s smart to buy and start building equity or if it makes more sense to settle for a potentially temporary situation. You may also want to note that rent is a tax-deductible business expense.
Should you buy?
There are times when buying property makes the most sense. Your answers to the following questions may help you see if this is the right course of action :
- Do you have the financial resources to buy and pay for upkeep on a building?
- Will buying property instead of leasing allow you to save more long-term?
- Are you certain that you want to operate your business out of the same area for years?
- Do you prefer to have control over your building and what you can do with the property?
If you answered yes to the above questions, it is possible that it is in your interests to buy instead of lease. There could be tax deductions available to you for owning property.
Making the right choice
You may be hesitant about signing a lease or making an offer, which is why many business owners find it beneficial to speak with an experienced real estate attorney before making any important real estate decisions. An assessment of your business and its needs can help you understand the most appropriate a beneficial way forward.