For many entrepreneurs and small business owners, the question of whether to buy property or to lease office space can be a confusing issue. If you ask a professional real estate broker, he or she will probably tell you that it depends on the particular situation. The truth is, when it comes to this important business decision, there really is no “one size fits all” solution.

Of course, if you are lacking sufficient capital to purchase a commercial building, then the decision becomes an easy one. But leasing may be the smartest move anyway: Statistics show that most new business owners start out by leasing office space, and many business consultants advise leasing your work space until you get on your feet and your business starts operating in the black. Some advantages to leasing your business property:

Flexibility. One obvious advantage to leasing property is the flexibility it provides. When the lease is up, you can easily relocate to another office that better suits the needs of your business and your budget.

Common area maintenance, HVAC, and operating costs. Take into account operating costs that the landlord may pass on to a business. If the landlord is charging separately for these services, try to negotiate a fixed fee or cap on the amount.

Tenant improvements. New space may need some improvements or alterations. Most form leases provide that the tenant can’t make any alterations or improvements without the landlord’s consent. Businesses should ask for a clause that says they can make alterations or improvements with the landlord’s consent and that consent won’t be unreasonably withheld or delayed. Repairs, improvements and replacements. Be aware of a clause that says that at the end of the lease premises must be returned in their original condition.

Shopping center leases: The tenant pays a base rate in conjunction with the square footage of the retail facility. Typically, the tenant will also pay some common charges and frequently a certain percentage of the gross sales. The tenant may also be assessed part of the property taxes. A shopping mall lease will often include terms about signage, hours of operations, common areas and deliveries. The landlord may also have the right to relocate the tenant.

Land or ground lease: The tenant leases the grounds and builds on the property. Typically, with a land or ground lease, all improvements on the property, including any building or buildings revert back to the landowner at the end of the lease period.

There are numerous variations on common lease forms. For example a lease may cover both office and warehouse space in one facility with separate rental amounts and separate options.

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