Commercial Property is it Better to Rent or Buy

From a commercial property point of view, 'better' can mean cheaper, but may also include areas such as business stability, tax efficiency, investment potential, affordability, etc. The decision is very rarely static but an ongoing process: what is 'better' in the long term may not be so in the short or medium term.

When thinking of buying or renting commercial property consider the following. However, you can also hire a property expert at

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Start-up businesses – it's often difficult to raise finance when you have just set up a business, and even if it is available it may be better spent on capital, staff, marketing, and stock.

Even if you can obtain a mortgage it may be better to wait and see: if the business is unsuccessful you have been tied in to a long loan; if successful, you may be looking for larger premises sooner rather than later.

Price – as with most things in life, price or cost will be a determining factor. In a market of declining values, now – or soon – may be the best time to invest in commercial property as prices are at their lowest for several years. The story is not a 'one-size' fits though, and some sectors of the commercial property market have declined faster than others.

There is a great deal of regional variation too. So potential investors need to do their homework and talk to those involved in commercial property management. It could however be that a decision to buy today will reap benefits for the business in the future – reducing overall costs and offering an asset for future borrowing.

Rental value – unlike the residential sector, commercial property rents have not seen a dramatic rise in recent years. Indeed in many areas, the opposite is true.

But as with residential property, the difference between rental values and purchase prices varies from location to location for lots of reasons that experts in local commercial property management will be happy to try to explain. These variations will be an important factor when deciding to buy or not.