Deciding whether to buy or rent a new property for your growing business is a critical decision for any business owner. Along with current loan rates, USB’s Head of Business Banking, Joe Vereline says the decision comes down to many additional factors that are unique to each business.
“Buying or renting a commercial property are both great options for business owners, but the decision often comes down to whether the business has the necessary down payment to make a purchase,” Vereline says. “Renting can be a good option if you’re not ready to buy, but it limits your ability to customize the space.
On the other hand, he adds, purchasing a property can be a strategic investment. For those concerned about not having a large enough down payment, business owners can work with their bank to explore options like SBA Loans, which allows for lower down payments on owner-occupied real estate.
Keith Wirtz, USB’s Chief Investment Officer, added that owning a property can shift an expense to an asset on the company’s balance sheet, offering long-term financial benefits. However, he also stresses the importance of carefully evaluating this commitment, as it ties up a significant portion of the business’s capital.
The Local Market: A Stable Environment for Investment
Despite national headlines predicting doom and gloom in the commercial real estate market, Wirtz and Vereline both agreed that Fairfield County, Connecticut, remains a stable and attractive market for businesses.
“Fairfield County’s commercial real estate market is much more stable than what you might hear about in the national media,” Wirtz noted. “Vacancy rates are down, and asking prices for rentals are going up. This stability makes purchasing a property an even more attractive option for those who have the capital.”
Conclusion
When it comes to buying or renting a commercial property, consider your business’s financial situation and long-term goals. Plus, the lending team at Union Savings Bank is here to offer personalized advice as your business partner – we have the local knowledge and experience to help you make a decision that aligns with your company’s future success.
Need a business real estate loan today? Talk to Joe today by calling 866.650.0720 or learn more about our business lending solutions here.
Disclaimer: This is a general communication being provided for informational purposes only. It is not designed to be a recommendation for any specific investment product, strategy, plan feature, or other purposes. By receiving this communication, you agree with the intended purpose described above. Union Savings Bank and its’ representatives are not suggesting that the recipient or any other person take a specific course of action or any action at all. Prior to making any investment or financial decisions, an investor should seek individualized advice from personal financial, legal, tax, and other professionals that take into account all of the particular facts and circumstances of an investor’s own situation.
Opinions and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. We believe the information provided here is reliable but should not be assumed to be accurate or complete. The views and strategies described may not be appropriate for all investors.
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