There are three things to consider when deciding between paying off a mortgage or renting: your company’s ability to adapt, its financial standing and the cyclicality of commercial real estate.
It’s essential to factor in the element of change — your business and the world are constantly changing. To remain relevant and consistent, your business must be able to be flexible and adaptable. When you commit to purchasing commercial real estate, you could be investing in something that will tie you down in the long run.
Financially, commercial real estate is a major investment and requires a large deposit — much more than that of residential real estate. So if there’s somewhere else you could be spending your money, such as hiring or new technology, consider those options.
Lastly, commercial real estate is very cyclical and varies from market to market. So if the market’s not too hot, you may find yourself stuck with a tricky investment.