Need some key pointers on a lease vs buy decision for large commercial space. Key current influencers?

I'm writing a general overview for commercial clients on the lease vs buy decision for large commercial space. I need some good free research to use. I would also like to have a list of current key influencers that can affect this decision.
In General Area - Asked by Kathleen G. - Mar 30, 2012
Report Abuse
Answer this Question

Answer(s)

Jeff R.
Lender/Mortgage Broker
Birmingham, MI

This might help. Its a report on buying vs owning from a finance/bankers point of view.
http://www.cfa-commercial.com/General.html

Apr 6, 2012
Report Abuse
Mac A.
Broker/Agent
Orlando, FL

This is a question many companies struggle with, and I think the best answer will come from your Accountant. Typically your Accountant will be the one most familiar with your particular business settings. Among many other things, owning a building will allow for depreciation, and leasing will allow for deductions. However, every scenario will be different depending on multiple factors, such as company formation, time frame, market conditions, and your company projections.
My personal opinion in this market is to be hyper-focused on a particular market and purchase using OPM while the rates are low. If it's over 51% user-occupied, there is a possibility of getting most of it financed by the SBA. But again... talk to your accountant and ask what the most advantageous choice would be for your business in particular.

Apr 27, 2012
Report Abuse
Viviana K.
Broker/Agent
Orlando, FL

Mac A. is on the money -- depreciation, deductions and write-offs are the advantage but liability and risk (insurance and loss) are also in the picture

Jun 26, 2014
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question