Leasing, renting or buying commercial property in the UK
For many firms, a massive decision which has to be taken is what to do in relation to their business properties. Should they purchase their own property, or lease the office space or industrial space? Naturally there are advantages with both and different options suit different companies.
The advantages of buying a commercial property outright is that it is yours to own and to do with as you please. If your business wants to make changes – for example converting a draughty warehouse into a state of the art bullpen office – then you can do so.
The business property once owned is part of that company's portfolio and is therefore technically an asset. If the firm is looking for a way to generate extra funds then they can re-mortgage the property that they own. Having your own business property also allows for the option of expansion should there be land available to buy nearby. In effect, purchasing a commercial property is ideal for the business who intends to stay in that place and does not envisage moving into a different property in the near future.
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When a company wants to lease and rent business properties it is usually because of a number of reasons. The firm may not have the finances to be able to buy a commercial site, or it could be that the commercial site is owned by a landlord who does not want to sell it. It may also suit a business to lease or rent commercial property for tax purposes compared with buying. The advantage of leasing or renting a business property is that companies who are unsure about their short-term plans can at least work on half-yearly or annual cycles before deciding whether to renew the commercial property lease or not.
There are then a fair few options which need to be thought about before committing to the choice of buying, leasing or renting a commercial property. As ever, only the company officials will know whether the company are best suited to buying, leasing or renting.
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