• Contact Us
Friday, September 22, 2023
Bevwo
No Result
View All Result
  • Business
  • Finance
  • Marketing
  • Real Estate
  • Technology
  • Web Design
  • Other
    • Automotive
    • Career
    • Dental
    • Education
    • Entertainment
    • Environment
    • Family
    • Fashion
    • Fitness
    • Food
    • General
    • Health
    • Home
    • Legal
    • Lifestyle
    • Music
    • Pets
    • Photography
    • Politics
    • Self Improvement
    • Shopping
    • Travel
    • Wedding
    • Women
Bevwo
  • Business
  • Finance
  • Marketing
  • Real Estate
  • Technology
  • Web Design
  • Other
    • Automotive
    • Career
    • Dental
    • Education
    • Entertainment
    • Environment
    • Family
    • Fashion
    • Fitness
    • Food
    • General
    • Health
    • Home
    • Legal
    • Lifestyle
    • Music
    • Pets
    • Photography
    • Politics
    • Self Improvement
    • Shopping
    • Travel
    • Wedding
    • Women
No Result
View All Result
Bevwo
No Result
View All Result

The Top 5 Reasons to Lease Industrial Property

The Top 5 Reasons to Lease Industrial Property
Share on FacebookShare on Twitter

Currently, the United States is seeing a historically low vacancy rate of 3.3% in industrial property markets. More and more businesses occupying properties, especially after the last few years of solid leasing momentum.

But newer businesses looking to find commercial or industrial space for their company are faced with a difficult decision: buy or lease? 

In this article, we’ll tell you 5 reasons why finding an industrial property for lease is the way to go.

Keep reading to learn more.

1. You Don’t Have to Make a Down Payment

For most businesses, leasing makes the most sense when it comes to finding industrial property. One of the biggest reasons that stand out is that you don’t have to make a large down payment that comes with purchasing a property.

When you buy a commercial space with a traditional loan, you usually have to put down a sizable payment that can be anywhere from 10% to 40% of the total value of the property. This is a significant commitment for any business.

In addition, you might run into some trouble trying to qualify for a commercial real estate loan that comes with a reasonable interest rate if you can’t get approved for bank financing. The ideal commercial real estate loans have interest rates that are under 4%, but other money lenders might charge more than 10%. 

On the other hand, when you lease a property, you usually only have to put down a security deposit. This is usually a fraction of what a down payment would cost. Depending on the location and owner, you’ll usually find landlords asking for a security deposit that is around one month’s rent. Some other factors that might vary include the tenant’s credit or the TI allowance.

This means that your business has a lot more capital that you can put into your business or invest in building out the property.

Whenever you are deciding between leasing or purchasing, it’s always important to factor in the cost of capital and opportunity cost that comes with investing in commercial real estate instead of your business.

2. Your Landlord Takes Care of Repairs and Maintenance

When you lease commercial space for your business, the landlord of the space will take care of general area maintenance. This can include tasks like:

  • HVAC
  • Plumbing maintenance
  • Building repairs
  • Alterations

The landlord will usually have a professional property management team that will be able to handle all of the matters for the tenant on a daily basis. 

On the other hand, if you own the property, you’ll have a whole new set of issues and tasks that are not business-related. These issues can take valuable resources like time and money away. When you lease, you can focus on running your business without having to manage the property while leaving the maintenance to the professional team.

Another thing to keep in mind is that if someone damages your property, you’re liable for it. You’ll have to pay for a liability insurance policy to protect your business from lawsuits. 

3. Access to More Desirable Locations

Industrial property for lease typically offers the tenant access to more desirable locations. This is because most development for industrial space has already taken place in these locations. This means that purchasing land in these areas is much more costly, which will price out most businesses.

Also, most businesses that want to own property don’t need buildings that are as large as normal multi-tenant buildings that are usually larger than 100,000 square feet. The truth is that there are not many small buildings to choose from in the commercial real estate market. 

If your business is planning on purchasing land to build a building, it’s important to know that the prices are based on the idea that the buyer will build the largest building possible on the property. This is usually much bigger than a buyer will need, making it much more expensive.

Leasing property in an existing building will give businesses many more options to choose the best possible location. 

4. More Room to Grow and Flexibility

Arguably the most important factor that comes with leasing industrial space is the ability to have the most flexibility possible. 

If your business is young and growing, leasing makes it much easier to accommodate its growth. When you sign your lease, you can ask for expansion options that give you first rights to acquire more space in the building once it becomes available. 

If you buy property, you’ll likely be limited to the size of the property as well as the zoning restrictions of the area. 

Also, lease terms typically last anywhere from 3 to 10 years, which gives you significantly more flexibility than a lease that comes with a 15 to 30-year mortgage. As your business evolves, you’ll be free to move into a new space that better accommodates its needs. 

If you move into a building that is already part of an existing development, it will make it much easier to lease from the management company rather than buy it from them. 

5. Potential Tax Benefits

When it comes to the “buy vs. lease” decision for your business, both sides have certain tax benefits. However, the tax benefits they get are different.

When you lease, you are able to deduct several payments, including:

  • Lease payments
  • Property taxes
  • Property insurance
  • Utilities and maintenance

For more information about the tax benefits of leasing industrial property, make sure to consult a tax professional.

Find an Industrial Property for Lease 

Those five reasons are just the beginning of why finding an industrial property for lease is the way to go for your business. 

If you’re ready to grow your business with flexible and scalable solutions, look no further. G3 Real Estate can find you the perfect industrial property location for your business. 

Contact us today at G3 Real Estate!

Previous Post

A Busy Body is a Relaxed Body: How Relaxation and Exercise Go Hand-in-Hand

Next Post

How to determine the best survey provider for your data needs

Next Post
How to determine the best survey provider for your data needs

How to determine the best survey provider for your data needs

Are the Cleveland Browns in Trouble After Poor Performance and Strange Behavior by QB?

Are the Cleveland Browns in Trouble After Poor Performance and Strange Behavior by QB?

The Loss to the Browns Once more, the Cleveland Browns defense performed admirably. Not flawless, yet sufficient to prevail. Despite...

Read more

What Signage is Required on a Building Site?

What Signage is Required on a Building Site?

Building sites are bustling hubs of activity, where professionals from various trades come together to create structures from the ground...

Read more

REVOLUTIONIZING HEALTHCARE: THE IMPACT OF BLOCKCHAIN ON MEDICAL INDUSTRY

REVOLUTIONIZING HEALTHCARE: THE IMPACT OF BLOCKCHAIN ON MEDICAL INDUSTRY

Over the years, blockchain technology has proven to be a versatile tool for decentralized monetary transactions and data exchange in...

Read more

Breaking down the Slovakian bond market: insights and opportunities for traders

Breaking down the Slovakian bond market: insights and opportunities for traders

Though often overshadowed by its equity counterpart, the Slovakian bond market presents a wealth of opportunities for astute traders seeking...

Read more
Entertainment

Exploring the Durability and Reliability of Marine Lithium Batteries

When it comes to marine applications, durability and reliability are paramount in selecting the right battery. Marine lithium batteries, particularly...

Read more
Blue Light and Your Eyes: Understanding the Risks and Solutions

Blue Light and Your Eyes: Understanding the Risks and Solutions

In our modern digital age, we are constantly exposed to screens and devices that emit blue light. While these technological...

Amazon Astro

Amazon Astro

Exploring the Versatile Amazon Astro Robot: Features, Benefits, and More here In September 2021, Amazon unveiled a groundbreaking addition to the world of...

60,000 Money-Making Chrome Extensions Are Set to be Removed from the Chrome Web Store

60,000 Money-Making Chrome Extensions Are Set to be Removed from the Chrome Web Store

Ten Unique Benefits of Using Laptop Rental

Ten Unique Benefits of Using Laptop Rental

تاكسي

تاكسي

  • Home

© 2020 Bevwo.com / Privacy Policy

No Result
View All Result
  • Business
  • Finance
  • Marketing
  • Real Estate
  • Technology
  • Web Design
  • Other
    • Automotive
    • Career
    • Dental
    • Education
    • Entertainment
    • Environment
    • Family
    • Fashion
    • Fitness
    • Food
    • General
    • Health
    • Home
    • Legal
    • Lifestyle
    • Music
    • Pets
    • Photography
    • Politics
    • Self Improvement
    • Shopping
    • Travel
    • Wedding
    • Women

© 2020 Bevwo.com / Privacy Policy