A commercial real estate location that will work for your Louisiana company and fits in your budget is hard to find. Once you find the right place for your business, it can be tempting to simply sign the purchase agreement or lease contract, and move forward as quickly as possible. Before you do this, however, it is smart to think carefully about a few factors.
The terms of your commercial lease or purchase agreement will impact your business for years to come. It's in your interests to be cautious and careful, ensuring that the terms of the agreement suit the needs of your business and will not leave you exposed to legal or financial risk. Whether you are buying or leasing, you will want to think long-term when making this important decision.
Should you buy?
You may be trying to decide if you should lease a space or you should buy a building. It may be best for your company to buy if you are primarily concerned about what is cheapest in the long run. If you have the money to cover the down payment and other costs, buying may be optimal.
Purchasing the building will allow you to have ultimate control over the space and what you can and cannot do. When you lease, you will have to deal with a landlord who will have the final say over things pertaining to the building. If you purchase a building, however, you will be financially responsible for things like utilities, insurance, repairs and more.
Should you lease?
You may want to lease your space if you cannot afford the up-front costs of buying a building. Leasing subjects you to the authority of a landlord, but this can be beneficial if you do not want the hassle or expense of things like building maintenance, insurance and other costs associated with owning property. When you lease, you also have the freedom to move to another location with relative ease at some point in the future.
Addressing your concerns
Before you buy or lease, you may want to consider speaking with a real estate attorney about your situation. This can ensure that you do not make mistakes or choices that could negatively impact your company down the road. It's good to have knowledgeable guidance as you make important decisions that will directly affect day-to-day operations and your bottom line.