Commercial premises - buy or rent?

When thinking about setting up a shop, a restaurant or another kind of service business, we cannot ignore the question of premises – our business must have somewhere to grow, after all! It is therefore worth considering which of the possible options - buying a property or renting it – will be more cost-effective for our business. What should we pay attention to?

Every business is a different story

Whether we decide to buy a property for our business or opt for renting instead depends above all on the situation our company is in and the goals we set for it. Let us think about the potential premises in the long term – it is, after all, a key investment for the future of our business.

Buying a property – an investment in the future

Many would probably say that in the long run, buying a property outright will be the most profitable. And indeed – it brings many benefits. First of all, we are not dependent on a landlord; how we use the space of the premises depends solely on our plans (and financial means). We are also not at risk of the landlord unexpectedly terminating the lease or of having to pay high rent. Finally, a commercial property is simply a good way to invest capital – if our business grows and needs to change premises, we will be able to sell or let our property. And probably at a considerable profit, especially with the help of an experienced estate agency.

Buying a property in Katowice is a particularly good idea for companies that already have substantial capital. Such an investment should not shake the financial position of our business and, in the longer term, it will probably pay for itself. Entrepreneurs whose businesses are growing quickly can also confidently consider investing in a property of their own.

When is it better to rent premises than to buy them?

And although we can recommend a property investment to many companies, for some businesses renting premises will prove the more cost-effective solution. This applies above all to small companies that have only recently entered the market and have limited creditworthiness. For them, renting is often the only choice – which does not mean a bad one. Renting premises allows us to maintain financial liquidity; this is especially important at the start of a business, when we have not yet had time to accumulate large capital.

The wish to maintain financial liquidity is also the reason why, in some industries, even entrepreneurs with an established position choose to rent. One example worth mentioning is the food service industry, where it is not so easy to build up stable capital.

Renting a property is a good idea for entrepreneurs for whom the location of their premises is particularly important – including the restaurateurs already mentioned. Buying a property right in the city centre can be a difficult task, requiring a truly substantial investment; sometimes it is even impossible. It will be much easier then to find premises to rent in which we can grow our business.