What You Need to Know About Commercial Real Estate: Lease or Purchase
Wake up, check emails, drive to a property to offer clients a tour, take a phone call while driving to a second tour— that’s a typical day in the life of Joe and Heidi Stance. The power couple are not only experts on commercial real estate, they are experts at putting their clients at ease.
Purchasing a property or leasing a building is a huge decision and one that impacts both the individual and the organization they represent. The Stances’ business model is centered around the golden rule: treat others as you want to be treated. With such high standards, Joe and Heidi are known for helping their clients find locations that best fit their needs both immediately and in the long run.
Commercial real estate covers a variety of industries. Medical professionals, retail businesses, non-profits organizations etc. all have one thing in common: they will have to consider purchasing or leasing a building or property at some point. Whatever your reason for needing a building or land, the first decision you will face is whether or not you should lease or purchase.
Is Purchasing Affordable?
Most individuals will look to leasing as their first option, but the Stance Team tries to keep both options on the table. Many clients may not even realize they are in a position to purchase right off the bat.
With Joe Stance’s in-depth knowledge of the Riverside area and surrounding cities, he can often find a property that fits a client’s needs and is available for a sale. SBA financing might put a client in the position to purchase a building for as low as 10% down. What clients may not realize is that purchasing can often be more affordable than a lease in the long run!
By purchasing property, the owner also gets the added benefit of having more control over how they manage their building and/or land. Other possible benefits of your commercial real estate purchase are potential tax breaks, building equity and boosting the value of your organization over time.
Utilizing Extra Space
Tenants can help cover the cost of a space. If you are purchasing a building or property, chances are you may have extra space you can lease out to tenants. Sometimes a quality tenant can actually help cover the costs of the purchase.
Take for example a Stance Commercial Real Estate client who was looking for a large building for their organization to grow into. At first, the client assumed leasing would be the only affordable option. Not only did Joe Stance find a building that had plenty of space and was for sale at a reasonable price, but the building also came with short-term tenants whose monthly lease covered the cost of the building’s overall mortgage. The building practically paid for itself!
Commercial Real Estate Lease Options
If a client isn’t in a position to purchase or if they simply prefer not to, the Stance Team will look at the entire market for the perfect commercial real estate property to lease.
While purchasing can often be more affordable in the long run, sometimes leasing a building or land is still the better option. A purchasing deposit, paid up front, may be out of budget for certain organizations. There are also risks involved with purchasing that may not necessarily come with leasing. With a lease, you aren’t liable for nearly as much as you would be as the sole owner of a property.
Leasing with an option to buy can also be a great approach. Clients may lease a building until the building or property owner is ready to sell. This takes away the pressures of immediate purchase, while assuring there will eventually be the option of ownership.
At the end of the day there is no one-fits-all solution. That’s why having a commercial real estate broker you can trust, is a must. Joe and Heidi Stance strive to always be available, are fast and responsive, and they just simply love to help people bring their visions to life. Stance Commercial Real Estate is all about service, so whether you are purchasing property or leasing a building, Team Stance has your best interest in mind.
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Have questions? Call Joe at (909) 772-1212 for a free consultation, or contact us for more information. Ready to see what’s on the market? Browse our list of available properties.
