A Comprehensive Guide by McGrath Realty

At McGrath Realty, one of the most significant decisions we see business owners make is whether to rent or own their commercial real estate. While both options have their advantages, owning commercial property can provide significant benefits in the long run. In this comprehensive guide, we’ll explore the benefits of owning vs. renting commercial real estate, so you can make an informed decision for your business.

Equity Building

When you own a commercial property, you build equity over time, which can provide a substantial return on investment. Instead of paying rent to a landlord, your monthly payments go toward building your equity and long-term wealth. Owning your property also gives you more control over your business finances, as you won’t have to worry about rent increases or lease renewals.

Tax Benefits

Another advantage of owning commercial real estate is the tax benefits. Property owners can deduct interest expenses, property taxes, and depreciation from their taxes, reducing their taxable income. Additionally, owning commercial property can provide significant tax benefits when it comes to selling your property. Through a 1031 exchange, you can defer capital gains taxes by reinvesting your profits into a similar investment property.

Customization and Flexibility

When you own commercial property, you have the flexibility to customize and adapt the space to meet your business needs. You can make changes to the property without seeking permission from a landlord, giving you more control over the look and feel of your business. This can also be a significant advantage in a competitive market, as your property can be tailored to meet your specific needs and stand out from the competition.

Potential Rental Income

If your business requires less space than what you own, you can rent out the excess space and generate rental income. This rental income can help offset the cost of your mortgage and property expenses, providing an additional revenue stream for your business.

Long-term Stability

Owning commercial property provides long-term stability for your business. Unlike renting, you won’t have to worry about lease renewals or landlord negotiations, giving you peace of mind knowing that you have a stable location for your business.

While renting commercial real estate can provide short-term flexibility, owning your property can provide significant long-term benefits for your business. At McGrath Realty, our team of experts can help you navigate the commercial real estate market and find the perfect property to meet your needs. Contact McGrath Realty today to learn more about owning commercial property, and start your journey to long-term stability and success for your business.