When it comes to finding a retail space for your business, you have the option to either buy or lease real estate. Many business owners love the idea of owning their business location outright, but there are more benefits to leasing than you may realize. Here are a few of the best reasons to lease a retail space for your business.
Reason #1: It’s Less Expensive
Buying a retail space requires much more from you than leasing. Most business owners must take out a loan and finance their purchased property, and typical SBA loans require at least 10% down at the time of signing. When leasing a retail space, it’s common for your only upfront costs to be a security deposit and one month’s rent, and taking out a loan may even be unnecessary. Your landlord or property manager will be the one paying any additional costs related to the building, including repairs and maintenance. Although purchasing can sometimes be less expensive in the long run, leasing is much more financially practical for most retail businesses since you’ll likely be receiving a better deal on a month-to-month basis.
Reason #2: Lower Liability and Risks
When you purchase a piece of commercial real estate, you become responsible for:
- the safety and health of those who work in or visit your retail shop
- maintenance and repairs
- purchasing additional insurance policies
- acting as property manager if you decide to rent any part of the property to another tenant
Leasing a retail space allows you to avoid these potentially costly and stressful responsibilities and gives you more time and finances to put towards growing your business. When you lease rather than purchase, you also don’t have to worry about fluctuations or declines in property value. If the value of the property increases, your property manager may increase your monthly rent, but since you do not own the property you still have the options to either negotiate the rent payments or simply move to a new location.
Reason #3: You Have More Flexibility
Buying and selling go hand-in-hand when it comes to real estate. In most cases, if you purchase a property, you have to sell it in order to vacate the space and set up shop in a new location. Putting a commercial property on the market can be overwhelming and may take many months or even years to sell. Leasing the retail space means that, if and when you decide to change locations, you can do so without much fuss. You have the freedom to decide whether you want to do any of the following:
- Plan your move for the same time that your current lease expires
- Terminate your lease early
- Negotiate lease terms or rates with the property owner or manager
Interested in Leasing a Retail Space in Finksburg, MD?
Tomarchio Enterprises has retail space for lease on both the first and second floors of the Finksburg Plaza shopping center. This property is ideal for commercial businesses looking to offer their products to an eager community with plenty of homeowners and shoppers nearby. Contact us today for more information on leasing a commercial retail space in Maryland.