As a leader in Colorado Springs commercial real estate, Blue Mountain Real Estate is committed to helping you make the right decision for your business needs! It can be stressful trying to decide whether or not it makes sense to lease or buy commercial real estate, so we have compiled a list of factors to consider when making your decision.
HOW LONG WILL YOU STAY THERE?
If you plan to stay in your Colorado Springs business location for longer than 7 years, buying is generally a cheaper option that leasing your space. Staying in your space drastically longer than 7 years will save enormous amounts of money, whereas you would be better off leasing if only staying there under 7 years. Even though cost is a major element to consider, there are also factors to keep in mind:
DOES YOUR CASH FLOW MATCH UP?
Buying is going to cost you a lot more upfront than leasing. Can you afford to tie up money in the down payment for a Colorado Springs commercial real estate purchase? Obviously your business’ cash flow is a vital element to consider when deciding whether or not to buy or lease a property. If you have flexibility to tie up your cash flow with the purchase of your space, then it is probably a no-brainer. But a lot of us have to find a healthy balance to maintain our current operation, while growing and thinking about the future. Even if you could afford it, would that money be better spent if you invested it in growing your business?
HOW FAST WILL YOU GROW?
Have you considered how fast you will grow and if the commercial real estate you are looking to purchase will fulfill your space needs in 1 year or 3 years? If you are aggressively marketing and trying to grow your business, make sure you are looking to the future and considering what your needs will be. If you are unsure what your business forecast looks like, leasing might be a safer option for you.
DO YOU WANT TO DEAL WITH MAINTENANCE?
Some people are turned off by the idea of having to keep up with building maintenance. This is a big element to consider when choosing between leasing or buying a Colorado Springs commercial real estate property. When it snows, do you want to handle the snow removal or finding a reputable company to do it for you? What about gardening or xeriscape maintenance? These are all costs to consider adding in when comparing the two options.
COLORADO SPRINGS COMMERCIAL REAL ESTATE MADE EASY
We are here to answer any questions you might have regarding your upcoming commercial real estate needs in Colorado Springs. Feel free to get in touch through our website!