Considering whether to buy or rent commercial property in the current uncertain financial climate can be difficult. It’s crucial to evaluate the pros and cons of both options for your future workspace.
In this article we will take a look over the advantages of each option to help you make informed decisions when looking for your next property.
Reasons to rent a property:
Renting might be a more suitable choice for your business, offering greater flexibility as your venture grows. Some advantages of renting include
However, tenants should be aware that landlords may raise rents to cover their increased costs due to interest rate changes. As such, examine any rent review clauses before signing a lease.
Reasons to buy a commercial property:
Purchasing a property entails a significant financial obligation, but it enables you to earn income through renting or subletting and benefit from potential property value appreciation upon selling. High-return investments typically involve properties with numerous tenants, such as:
When deciding to buy a property you should consider various factors and expenses, including:
Purchasing and selling commercial properties are subject to taxes, such as Stamp Duty Land Tax (SDLT) and Capital Gains Tax or Corporation Tax. It’s essential to consult your commercial property adviser throughout the process, as professional assistance can often help reduce costs.
Our commercial property team is equipped to support all aspects of your commercial property endeavours, including investment, leasing, buying, and financing.
Commercial property transactions involve numerous considerations, such as preparing a sale contract, negotiating terms, conducting buyer or seller searches, and handling property and funding matters. Seeking the best legal advice is crucial for securing an excellent deal, not just a satisfactory one.
For guidance and assistance in all commercial property matters, please feel free to contact us.