5 Advantages of Leasing Commercial Property
Many Tampa business owners are aware of the low money down scenario with leasing compared to other traditional financing options. What may be the biggest perk for businesses are the numerous tax advantages.
It is always wise to make sure to contact your local CPA to check these tax benefits in your State, as rules vary according to the respective State tax code. Property lease payments are typically considered 100% deductible as a business expenses, a definitive advantage over a traditional loan on a purchase, where the interest depreciation and deductions represent a small portion of your total monthly expenses.
The monthly lease payment is the consistent and known, so it’s simple to predict and budget for the cost. Working cash flow is a benefit to any company. You usually pay less than you would with traditional financing on a purchase, which helps conserve working capital.
Flexible Lease Offerings
Another great significant advantage why Tampa business owners lease property is its flexibility. Tampa businesses owners can lease just about everything their company needs from commercial property Tampa itself, office equipment, vehicles, to office furniture. For expanding Tampa businesses leasing may be a sound financial decision needed to propel their efforts.
Flexible Lease Terms
Let’s say your company finally decided to lease your Tampa commercial real estate for sale. There are a many lease options to choose from. A knowledgeable Tampa real estate broker can help your business navigate the best possible lease terms for your business needs. When selecting a Tampa real estate broker make sure they are well versed in tenant representation, and local market trends. When it’s time to expand your business, your commercial real estate broker will be able to show you the advantages of both a lease and a loan and together. You can determine which option best suits your business’ unique needs.
Lower Initial Cash Outlay
While there is usually some tenant costs to occupy a new commercial rental property, rarely is the cash need as great, when compared to purchasing your space. Tenants are able to avoid the down payments and lender equity requirements, so that they are able to save their cash for areas with potentially greater returns in their own business.
Different businesses have different needs when it comes to cash flow and income streams. Whether you decide to lease or own the ultimate decision should reflect your own unique business situation. While those that lease typically forego the accretive benefits of ownership, the smaller cash amount necessary to enter into a commercial leased property, and the more surety in stabilizing costs in maintaining the lease can be strong advantages in helping an owner arrive at the decision to lease a property.
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