Own or Lease? what’s right for your business space?

When it comes to finding the right space for your business, one of the biggest decisions you'll make is whether to own or lease. Each option has its advantages and understanding them can help you make a smart, strategic choice for your future. I’ve met many business owners who eventually reach a point in their business journey where they realize they are tired of paying their landlord and want to pay themselves instead as the landlord.

While leasing space is typically great for start-up ventures or businesses looking for more flexibility to grow or pivot their plan, owning your property is a great way to build wealth and add to your overall strategy for your business. It also allows for a future exit strategy where you sell your business, but retain the real estate and maintain cash flow and value in the appreciating asset. It can be a win-win strategy if executed correctly.

Why Leasing Might Be Right For You (today):

·      Lower Upfront Costs – Leasing typically requires less capital to get started.

·      Flexibility to Grow or Pivot – If your business is evolving, it’s easier to relocate or upsize.

·      Fewer Responsibilities – Maintenance and major repairs are usually handled by the landlord.

·      Ideal for Startups or Transitional Phases – Leasing allows you to focus on running your business without long-term commitment.

Why Buying Might Be Right For You (Now):

·      Build Long-Term Equity – Instead of paying rent, you invest in an asset.

·      Control Over Your Space – Customize the space to fit your brand and operations.

·      Fixed Costs Over Time – A mortgage can provide predictable costs compared to rising rents.

·      Potential Rental Income – If you own more space than you need, you can lease out the extra.

To know which path is right for you, you need to Ask Yourself these questions:

1.     Do I plan to stay in this location for the long term?

2.     Am I financially ready to take on ownership responsibilities?

3.     Does my business have stable, predictable income?

4.     Do I want to build equity and invest in real estate as part of my strategy?

The Bottom Line:

There’s no universal answer to this question; your decision should reflect your business goals, financial situation, and growth trajectory. Leasing offers agility and lower risk while ownership provides long-term stability and investment potential.

Need help evaluating your options? I help business owners like you assess the pros and cons of leasing vs. owning every day. If you’re ready to explore what makes the most sense for your business, let’s chat!

I have multiple resources available including The Women’s Guide to Investing in Commercial Real Estate—a resource to help women feel confident in taking that next step. I also have a Get Ready to Lease and Get Ready to Buy checklist so you can get organized and take action whichever way you choose to go!

If you’re interested in learning more about the latest trends and opportunities in commercial real estate as well, then I invite you to join my free quarterly newsletter—it’s a great way to stay informed and get insider insights on the market.