If you want to open a retail business, you have a lot of options and a lot of details you need to think about. When you are looking for your space for the retail business you want to run, you need to find a space in the best location but you also need to decide if you want to own your space or lease it. In the same way renting a home comes with some advantages over owning it, opting for a retail business space for lease comes with some real benefits. Here are a few of them:
- You do not have to come up with a lot of cash to start out. When you buy any kind of property, you have to put some money down. The amount of that down payment can vary depending on the kind of loan you need to get to pay for your retail space. If you are going for a hard money loan, which can make things go faster, you will need to put down more than if you go for a more traditional loan. When you look at a retail business space for lease, you do not have to worry about coming up with a down payment. This will give you more cash on hand to make your new retail business a success. You can spend that money on better marketing, for example.
- Leasing your space comes with some real tax benefits. When you own your own business space, you can take the costs of any work you did to improve your business and there are some costs that can be taken as tax deductions. By contrast, when you lease retail space, you can take all of your lease payments as a business expense. That means all of them can come off of your tax bill. If you have concerns about your tax liability for your retail business, this is one way to lower it.
- You do not have to deal with maintenance issues. This is one of the best parts of renting a house or apartment is the ability to call the landlord when you need something fixed. When you opt to go with a retail business space for lease rather than one for sale, if something does need to be repaired, you can call the landlord for the property. When you sign your lease, you need to work out some of this but a lot of the time, people, who get a retail business space for lease, are not responsible for the maintenance or repairs that need to be done on the property. That means you will have more cash on hand to put back into your business.
- You will have more options. When it comes to retail space, the old real estate adage, of “location, location, location,” could not be more apt. You need to get a space where your business will thrive. In many places, you have more options for a retail business space for lease than for sale. If you want to put your new retail store downtown where there is more foot traffic, you may find more of what you are looking for this way.
- The leasing process takes less time. When you go in to buy a commercial space, the process is much more lengthy than if you go for a lease. This makes the option to find a retail business space for a lease a lot more attractive for many people who want to open a new retail business or expand one that they already own and operate.
- You have more flexibility. When you buy a property, you are locked in. If you want to move to a larger or smaller space, you have a lot more options when you are leasing. Before you have to renew a lease, you can take some time and reevaluate your needs for your space. When you own a space, moving can be a lot more complicated and take a lot more time. You can really have more control over your space, in terms of getting the right size, location and terms, when you lease it rather than buy it.
Leasing a retail space is often a better option than buying.