There are many factors that make investing in a long-term commercial real estate lease appealing. If you’re looking to occupy a space over a long period of time without worrying about maintenance, investing in commercial real estate might be something worth exploring.
Why Invest in a Long-term Commercial Real Estate Lease?
While investing in a commercial property long-term lease can be a commitment, it can also be a great opportunity with tremendous financial rewards! Here are four reasons to invest in a long-term commercial real estate lease:
Location
Leasing long-term enables business owners to settle in an opportune location where they might not be able to afford to reside otherwise. A convenient location in a dynamic market offers your business more opportunities to reach potential clients, employees, and partners.
Stability
Signing a long-term lease gives you more stability from the start. When you invest in a long-term commercial real estate lease, you don’t have to tie up a large amount of cash in a down payment, closing costs, or due diligence fees. A fixed monthly rent payment allows you to easily budget costs for your business, without having to worry about maintenance or repairs. This way, you have more cash on hand to invest in other important aspects of your business, such as new equipment or technology.
Tax Benefits
Unlike ownership, business owners can deduct all costs associated with leasing property for commercial purposes from their gross income. Business owners that lease properties can also deduct all state and local property taxes, as well as labor expenses required to maintain the property.
Flexible Terms
A long-term lease gives you more leverage to negotiate terms and conditions. You may be able to lock in a fixed monthly rent for several years at a time. Investing in a long-term lease gives you the opportunity to build more trust and credibility with your landlord to make the renewal process simple.