When considering whether it’s best to lease or buy your medical office space, there are a few quick things to consider that can set you in the right direction.
Here are some of the benefits of leasing your space:
- Lower upfront costs: Leasing a medical space typically requires lower upfront costs compared to buying a property, allowing for the conserving of capital.
- Flexibility: Leases are usually shorter term compared to 20-30 year mortgages, giving the tenant the ability to adapt to changes in their business or move to a new location more easily.
- Lower maintenance responsibilities: In most cases, the landlord is responsible for some of the maintenance and upkeep of the building, freeing up the tenant to focus on running their business.
Here are some of the benefits of buying a medical space:
- Long-term stability and predictability: Owning a medical space provides stability and control over one’s business, as the property cannot be taken away or the lease terminated by the landlord. The owner will also know the monthly and annual costs far in advance, without the annual rent payment increases a landlord typically enforces.
- Potential for appreciation: If the property increases in value over time, the owner can benefit from that appreciation.
- Tax benefits: Ownership can provide tax benefits such as deductions for mortgage interest and depreciation.