BlogIndustrial Property for RentJohnson county industrial space at 917 Industrial Park in Alvarado

The answer to this question about buying, or leasing, industrial space is this:  it depends!

How’s that for noncommittal?  We are RDS Real Estate, serving the Greater Fort Worth Metroa area with over three million square feet of commercial and industrial property for lease.  Call us at 817-439-3224 for more information.

Despite the nature of our business, we will attempt to give an unbiased answer to the question posed in the title of this article.

Pros and cons of buying industrial space.

Buying industrial property is usually out of the question for most businesses, simply because of the cost.  The initial down payment puts it out of reach of most small and medium-sized businesses.  In addition, the cost of upkeep and repairs and maintenance can be crippling if one is on a tight budget, and it offers very little in the way of flexibility as you move into the future.  You are in a fixed building in a fixed location; should that location become less than ideal, or should your business outgrow that building, you are left with some tough decisions.

All that being said it is, without a doubt, a great investment, building equity as you operate your business, all the while receiving some great tax benefits.  And your mortgage payments are fixed, protecting you against any increases which may occur if you are leasing.

Pros and cons of leasing industrial property.

For companies on a tight budget, this is the way to go.  It costs much, much less to lease industrial property for rent, there is no repair or maintenance cost, there is great flexibility should the market change or your location becomes less than ideal, and there is an overall feeling of options should a change be needed.

However, as an investment, it is nonexistent. Leasing does nothing to improve equity, the tax benefits are considerably less, and you are subject to price increases at the end of each leasing period.

Which benefits you the most?

And this, really, is the important question.  If you have the money for the initial down payment, and permanence is a fairly sure thing, purchasing may very well be the route to take.  On the other hand, small companies with limited budgets really need to concentrate on making the business succeed and not worry about equity matters.  There will be many more opportunities, in the future, to purchase should you want to and should you be able to; in the early years of a business, the less risk and the less major expenditure, the better.

One thing you might think about doing is contacting a good tax accountant to discuss your options.  They will be able to spell out, in detail the tax ramifications of both buying and leasing for your specific situation.  And, of course, have a lawyer look over your purchase or leasing contract, just to make sure all of the T’s are crossed and the I’s dotted.  Mother’s old saying “better be safe than sorry” rings very true when it comes to buying, or leasing, real estate.

A final word about RDS Real Estate.

Three million square feet of property . . . we have what you need in industrial space.  Warehouse for rent? Office space for lease? Shop for rent? Loft for rent? Garage for rent? Retail space for lease?  Call us today, tell us what you need, tell us what your budget is, and then turn us loose to do what we do better than any other real estate firm in Tarrant, Parker, and Johnson Counties.