Remember when having your own business place felt like a dream? But things changed during a tough time called the Great Recession. People stopped investing, small businesses struggled, and the places where businesses operate (we call it commercial real estate) took a hit. This affected almost every business and the value of places.

Good news! The worst part of this tough time for commercial real estate has been over long ago. The markets are alive and stable again, people are investing money, and the value of these places is now steady. You might want to think about buying (instead of renting) your business place. Here are 3 steps from CARMEN CRE’s experts to help you decide:

Step One: Think About Your Business

1. Special Features

Does your business require something special inside or outside the building? If these things need approval from the owner or cost a lot, it might be better to own the workspace and invest in your own stuff.

2. Space Requirements

How much do you think your business will need? Some businesses always need the same amount of space, while others might need more or less over time.

3. Location Stability

Is it super important for your business to stay in the same place for a long time? The location is critical for some businesses, like certain shops or services (a tailor shop or a small restaurant). For others, it might not be.

4.    On Paper

How does your business look on paper? A chapter in a book called “Financial Fresh Start” can help you make your business look good on paper, understand what your bank wants, and get an important loan.

Step Two: Think About Money

1. Cash Flow

If you need money for your business in the beginning, leasing might be a better option for you. You’ll have to pay only a security deposit and rent while buying commercial real estate needs a big downpayment and other costs.

2. Overhead Stability

If you can plan for the long term, owning helps you know your expenses better. You no longer have to worry about the landlord raising your rent and making a profit for themselves.

3. Tax Benefits

Unlike rent, the money you use to buy commercial property in Chicago or around has benefits over time. You can deduct some things from taxes. But, as a commercial real estate owner, you can deduct interest, real estate taxes, and other costs.

4. ROI (Return on Investment)

Renting doesn’t give you any ROI. While buying a commercial property increases its value over time. Our commercial real estate experts at CARMEN CRE can help you find the best location where property value grows faster.

Step Three: Think About Yourself

1. Repairs and Maintenance

If you don’t want to deal with maintaining things, buying might not be for you. Because when you buy a commercial property, you are responsible for everything from maintenance to operations.

2. Becoming an Investor

Buying puts, you in a different business – commercial real estate investing. It’s more work, but you can make more money. Some of our clients at CARMEN CRE buy more land than they need and rent it to others for profit.

3. The Legal Side

To succeed in commercial real estate, you need to know local rules and laws. And no one can tell you better than a team of local professionals like CARMEN CRE in Chicago. Call us now to make the right decision with confidence.

Buying or leasing commercial real estate for your business might be based on many factors. Your personal preferences, budget, and needs are some of them that are generally considered. We at CARMEN CRE use a 3-step process to make a data-driven decision. Read the blog, or call us now to get a personalized solution for your commercial property.