Successful entrepreneurs know that reinvesting in your company leads to a successful enterprise. While you take the time to perfect your product or service, develop a dynamic sales team, and interview service providers, don’t overlook the benefits of real estate to your business strategy. Before leasing a facility, here are some reasons to consider purchasing the property.

Increase Your Investment

Commercial real estate investments help you make money over the long term. Property values typically appreciate over several years. Numerous tax benefits improve the bottom line of your financial statements. If you plan to buy and sell property, the 1031 Exchange limits your capital gains taxes. A real estate attorney can help you meet the requirements to take advantage of this money-saving opportunity.

You Will Save Money

Compare the long-term costs of lease rates versus loan rates. Typically, the total outlay of real estate loan payments is lower than lease rates. In addition, you know the amount due over the life of the loan. If you lease, the landlord will likely increase your rent when negotiating lease agreements.

Make More Cash

Consider purchasing a building with a larger footprint than you need. You can then lease the additional space to other commercial real estate tenants. Those lease rates often account for a substantial portion of your monthly loan payment. You can depend on that revenue throughout the year.

Protect Your Assets

One of the easiest ways to protect your wealth is by keeping it. When leasing, the landlord receives the benefit of your money. If you own the property, you are reinvesting in your business and keeping that asset in your company name. Over the life of your business, you can use your real estate to support your company objectives. You can make modifications to your buildings, such as:

• Update the exterior to reflect new signage if you rebrand your company.
• Restructure the interior to create a more open office environment.
• Create on-site training centers for customers, sales staff, or employees.

Develop Opportunities

Owning your commercial real estate helps you take advantage of new opportunities. You can use the property as collateral on loans for other business investments. If your company outgrows the facility, you can lease the site to another business. This gives you a monthly revenue stream while you move your business to a suitable location.

Deciding to purchase the operations facility for your business can be daunting. By understanding the benefits, you can build a successful company.