Leasing and Your Commercial Investment Property

Lightle Beckner Robison
Published on May 3, 2016

Leasing and Your Commercial Investment Property

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When it comes to deciding whether to sell or lease your commercial investment property, there is a lot more that goes into the process than just finding a commercial real estate agent to take care of the work for you. In order to get the results that you are looking for, it’s important that you get involved in the process and make sure both your wants and needs are clearly articulated to your agent. Depending on the market, there are always different options that you can take in order to get the best results.

Leasing is one way that you can generate continual income from your commercial investment property. This is usually a great option during downturns in the market and selling your property would result in a loss. When deciding to use the lease option for your investment property, it is important to remember that you will become the landlord for a period of at least one year.  As the landlord, you are agreeing to oversee the property. Your tenant, who will also sign a leasing agreement, is responsible for taking care of the property and paying rent.  What makes leasing different than renting is simple. After the agreed time period is up, the tenant will have the option of buying the property from you.

 

Many business owners use leasing as a way to invest in a permanent location for their business. With the ability to eventually purchase the property, there are a lot of business owners who use this as a long-term investment strategy in their business.  If you are a business owner who is considering getting into the commercial real estate investment market, leasing could be a great first step for you.

There are three great benefits of leasing a property to get into commercial real estate investment.

  • Typically have lower payments
  • Build your credit
  • Have the option of trying out the property before you buy it

If you are looking to sell your investment property, leasing could benefit you by allowing you to demand a higher price and move into a better market when it comes time to sell.  Usually, by the time you are ready to sell, you will be able to ask for a price that could be as much as ten to twenty percent more than it would have been just a year before.

As we’ve experienced in the last few years, the market can change fast.  If the market isn’t right, and you don’t like the price the market is setting your investment property, don’t sell.  Leasing is a great option for you can consider.  By leasing the property, you will have the ability to profit on either side of the fence.

Here at Lightle Beckner Robison, we believe that leasing is the backbone of all successful development and commercial asset management. Let us help you maximize your return on invest.

Learn more about leasing here.

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Leasing and Your Commercial Investment Property
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