For owners of small and medium-sized businesses the decision to lease space or purchase
can be daunting. Each of these options can bestow significant advantages or cause minorto-
major difficulties.
It is our goal to provide you with the necessary real estate knowledge to make informed
decisions, not replace your accountant or other financial advisor.
We offer detailed market information and honest recommendations from the position of a
disinterested third-party.
The decision to lease or purchase commercial real estate is not simply a choice between
two alternatives, but rather a series of options that must be evaluated.
In leasing commercial space, careful consideration must be given to the length of the lease,
treatment of expenses (who pays for what between landlord and tenant), effective rent or
actual occupancy costs, tenant improvements, and lease renewal options.
Comparatively, when purchasing a facility, businesses need to develop accurate growth
projections and forecast their space needs well into the future. Acquiring space sufficient to
meet current requirements may constrain future growth; while maintaining excess space
capacity in anticipation of growth can result in a drain on current cash flows.
These brief examples represent only a small sample of the complex factors that must
considered and analyzed before making an informed decision.
We can also provide our clients with comparative insight into the relative merits of a various
prospective leases, including terms, rents, renewals, and landlord-provided tenant
improvements. NWC is also able to provide purchasers with an array of due diligence
services.
Let us provide you with a second opinion. We will improve the quality of your decisions. |
