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Is it better to buy or lease a place to do business?

Running a Texas business involves much more than simply having a good idea and marketing that idea. There are many financial and legal matters to consider, including real estate. Where you will do business could matter as much as how you do business, and you will find it beneficial to carefully consider how you go about buying or leasing property.

In some cases, it may be more beneficial for a business to lease space while for others, it is prudent to go ahead and buy. This decision is about much more than just your finances in the moment — it's about what is best for your operations both today and long into the future. You may need experienced guidance to help you as you make these decisions.

When is it better to buy?

There are many benefits to owning and operating your own business, but there are also many responsibilities that come along with it. You must make decisions that are in the best interests of your company, including what type of commercial space you need, ideal location and whether or not you should buy or lease the space. There are many benefits to buying instead of leasing, including the following:

  • In many cases, it is most cost-effective in the long-run to buy instead of lease.
  • You will have more creative and logistical control over the space if you own it instead of just lease it.
  • Buying your commercial facility could ensure that you have the ideal location for years to come.
  • Owning your own property for your business could have certain tax benefits.
  • Purchasing a facility could be an investment for the future.

If you decided that buying is the best option for your business, you would be wise to seek legal guidance as you review the terms of your contract and seek to protect your interests every step of the way.

Purchasing commercial real estate is a complex process: it requires the negotiation of a favorable Contract of Sale, thorough review of the title commitment and survey, and proper legal structuring of the purchasing entity in order to minimize liability and the purchaser’s tax burden.  It is highly recommended that you engage an attorney as early in the process as possible so that you start the process on the right foot.

Your interests are at stake

It is smart not to make hasty decisions that pertain to the future of your business, but instead, you may find it beneficial to consider the long-term ramifications of any choice you make.

If you need to either lease or buy space for your business, it can be useful to seek an evaluation of your situation with a legal professional with experience in commercial real estate transactions. This can ensure you have the information you need to move forward and make decisions that benefit your business for years to come.  Similarly, the attorneys at Plunk Smith, PLLC can draft your purchase contract or, should you decide to rent space, the attorneys can review your lease to ensure that you are properly protected.

 

 

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Plunk Smith, PLLC
1701 Legacy Drive, Suite 2000
Frisco, TX 75034

Phone: 972-370-3333
Fax: 972-294-5274
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Plunk Smith, PLLC
Plunk Smith, PLLC