Source: Seacoast Online —
As a commercial real estate and business law attorney, I see a wide array of business models and strategies when it comes to leasing vs. buying commercial space. With some exceptions, larger businesses often lease, no matter the state of the real estate market, while many medium and smaller businesses want to buy their space. For many businesses, like people, the choice of whether to lease or purchase property is circumstantial and often seems understandably tied to the perception, and resultant psychology, of the state of the real estate market.
As with people’s reaction to the stock market, often businesses seem to be of the mindset that they must fall in with the tides and jump in at all costs to buy as the market rises or avoid purchase at the first sign of the market leveling out. Like most things in life, the answer is really more nuanced and more dependent on situational specifics than the ebbs and flows of the market. That said, one thing that is almost always overlooked are the variety of options that can be drafted into a commercial lease to keep the door open for purchasing the company’s leased space.
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