Real Estate 101: Should you buy or lease?

The decision to buy or lease comes up often in my discussions with clients.

You should buy if (a) you have sufficient equity for the down payment; (b) the debt carry of principal + interest is lower than lease rates; and (c) your business is “solid,” since liquidity for real estate assets takes time for disposal.

You are better off leasing if (a) the interest rates for buying are high (as they are now); (b) landlords are hungry for your business and offer deals (as they are now); and (c) the flexibility to grow or shrink fits your business operations.

– Steve Massell, Massell Commercial Real Estate, The Georgia 100