Commercial Mortgage Vs Paying Rent for Commercial Space

 

If you have a business and are renting out a commerical space, why not own it?

Short run, the math may hurt cash flows and will require a 15% to 25% downpayment to make it happen.

Long run, with a 10 to 20 year outlook, you would have paid down a large part of your mortgage and most likely the value of your property went up.  

On top of that, if you plan to sell the business, you can sell it and have the new owners of that business pay you rent for the property you own. 

A few years ago, rates were in the 5% to 6% range.  Today, it's possible to get it done in the low 3%'s.