Lease or Own? The Strategic Calculation
The decision to lease or purchase commercial property affects cash flow, tax treatment, and long-term business strategy. Our commercial real estate practice advises on both sides.
| Factor | Lease | Purchase |
|---|---|---|
| Upfront Cost | Security deposit + first/last | 20–30% down payment |
| Monthly Cash Flow | Rent (predictable) | Mortgage + taxes + insurance |
| Tax Treatment | Rent is deductible | Depreciation + interest deduction |
| Flexibility | Relocate at lease end | Locked to location |
| Equity Building | None — landlord benefits | Building ownership equity |
| Maintenance | Varies by lease type | Owner responsibility |
The Verdict
Lease when flexibility and cash preservation are priorities. Purchase when you plan to stay long-term and want equity appreciation. See Lease Negotiation Guide or Property Acquisition Guide.
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Lee Clark
Licensed ID & CA. Arbitrator, Judge Pro Tem, mediator since 2008.
Conor Meyers
CEO/GC of ACE Building Envelope Design. CLO of ZEA Biosciences.