Owners of businesses seeing an increase in profits often wonder if they should continue to lease their building or buy one of their own. Increasing profit is just one factor to consider when deciding if it’s time to buy a commercial building. Many other factors are just as important.
Buying may make sense if money is available and a building that would meet the company’s long-term needs can be found. But many business owners don’t consider the opportunity cost of committing capital to real estate. Many fail to ask themselves if available capital could be better used to grow the business in other ways, such as through new markets, new product lines, investment in robotics, or new operating processes.
Besides the opportunity costs of committing funds to one asset, owners should consider expenses related to building improvements or retrofits, property taxes, insurance, and ongoing maintenance. Owners should ask themselves what would happen to the building if the business merges with or is sold to another company.
To be sure, there are many benefits to purchasing a building. More control is afforded the owner, who is building equity that can be used as collateral for future financing, and mortgage payments are steady, without succumbing to market forces that raise or lower lease payments.
B:Side Capital is offering a webinar on August 20, 2025, to help business owners work through these questions and more. Their panel of industry experts will delve into the pros and cons of buying versus leasing for small businesses, including the intricacies of these two options. The webinar is geared toward both startups and seasoned entrepreneurs.
B:Side Capital and its nonprofit sister organization, B:Side Fund, offer small business loans to entrepreneurs in Arizona, Colorado, Utah, and New Mexico. B:Side Capital works with the U.S. Small Business Administration (SBA) as a Certified Development Company to offer SBA 504 loans for owner-occupied commercial real estate purchases, renovations, and construction. It also partners with traditional banks on the SBA 7(a) Loan Program, which offers general business financing from $25,000 to $5.5 million. Its nonprofit sister organization, B:Side Fund, offers loans, grants, and capital opportunities that target underserved communities.
B:Side takes a unique approach to business and leadership that has helped organizations of all sizes cultivate cultures of excellence. It emphasizes a self-awareness, philosophical, and practical approach to making people and situations better.
Register for the August 20, 2025 webinar. Learn more about B:Side Capital and B:Side Fund.