Your SlideShare is downloading. ×
The advantages of leasing a commercial real estate
The advantages of leasing a commercial real estate
The advantages of leasing a commercial real estate
The advantages of leasing a commercial real estate
The advantages of leasing a commercial real estate
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.

Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

The advantages of leasing a commercial real estate


Published on

Leasing eliminates most of the risks in building ownership. It also relieves you from the burden of property maintenance and property management issues which are now the responsibilities of the landlord.

  • Be the first to comment

  • Be the first to like this

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

No notes for slide


  • 1. The Advantages of Leasing a Commercial Real Estate
  • 2. • Just like any business decision, there are advantages and disadvantages of leasing and owning commercial real estate as well. The correct solution depends on each property’s features and location as well as the owner’s personal, financial, and tax situation. • From the owner’s perspective, ownership means obtaining the full physical and economical use of a property. There are several advantages to this approach, it gives the owner complete control to operate the building as they see fit. The ability to transform the appearance of a property and take advantage of its location is very important to many owners.
  • 3. • The financial benefits of ownership include tax savings, and additional rent income. Tax savings come from cost-recovery rules and mortgage interests paid during the holding period and when the property is sold. As the owner of the property, he or she is entitled to any appreciation in the value of the property during the period the property’s holding. And lastly, if a portion of the property is rented out, income from the other renters can be used to pay a portion of the mortgage on the property, fund the owner’s principal business, or be used for anything the owner see fit.
  • 4. • Financing for purchasing commercial real estate requires strong financial statements on the company and can sometimes require personal guarantees from the principals of the company themselves. Often, the addition of long-term debt on the balance sheet can make it hard for some companies to qualify for a mortgage under the lender’s debt ratio restrictions. • As the owner of the property, he or she bears a substantial amount of risk in the form of property damage, illiquidity, safety of the building’s occupants and visitors, functional obsolescence, and changes in codes or zoning ordinances that may be unexpected.
  • 5. Contact us… Address: 9999 Bellaire Boulevard, Suite 909, Houston, TX 77036 Phone: (713) 270-5400 E-mail: