In the short term, leasing may be a better option.
It avoids the need for lots of money up front, a bridge loan, etc.
The type of space we want seems to
be more easily available for lease than for purchase.
We currently have at least $9K per year of building-ownership-related expenses.
What are all of our current ownership-related expenses?
Possible additional costs:
Pass-through of property taxes.
This not regulated for commercial leases and is subject to negotiation. The most common arrangement is that the tenant pays the difference between the tax amount for the first year of the lease and the tax amount for the current year of the lease.
Cost of utilities.
At least two types:
Lease an entire building.
Lease part of a larger building.
Check that the owner and manager (if different) are reputable landlords.
Commercial tenants have fewer rights than residential ones.
Disputes can be very expensive.
Check what the lease says happens at the end of its term.
We could have to move out very quickly, or have our rent double or more.
We need 24x7 availability of full HVAC.
Commercial space often has limited HVAC outside of "business hours".
Is there a separate charge?
Method? (A nearby, always-available dumpster would be best.)
Are there any?
Who pays to get rid of them?
Must we use landlord-approved contractors?
What work can we do ourselves?
At the end of the lease, will we be charged for returning the space to its original condition? How much?
This page is maintained by Dave Anderson, and was last modified at 10:45 am on 5 June 2003.