Should You Buy or Rent Your Place of Business?

Here are three things to consider when deciding if you should invest in commercial real estate.

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
2 min read
Opinions expressed by Entrepreneur contributors are their own.

In this video, Entrepreneur Network partner Peter Esho goes over what you should be thinking about before you decide to invest in commercial real estate. 

There are three things to consider when deciding between paying off a mortgage or renting: your company's ability to adapt, its financial standing and the cyclicality of commercial real estate. 

It's essential to factor in the element of change -- your business and the world are constantly changing. To remain relevant and consistent, your business must be able to be flexible and adaptable. When you commit to purchasing commercial real estate, you could be investing in something that will tie you down in the long run. 

Financially, commercial real estate is a major investment and requires a large deposit -- much more than that of residential real estate. So if there's somewhere else you could be spending your money, such as hiring or new technology, consider those options. 

Lastly, commercial real estate is very cyclical and varies from market to market. So if the market's not too hot, you may find yourself stuck with a tricky investment. 

To help you figure out if you should buy or rent a place for your business, click play. 

Watch more YouTube videos from Peter Esho on his channel.

Related: This One Quality Is the Most Important to Success

The Entrepreneur Network is a global movement of creative, energetic and inspired video creators sharing their ideas, experience and vision for the next generation of business founders and owners. We provide expertise and opportunities to accelerate brand growth and effectively monetize video and audio content distributed across all digital platforms for the business genre.

Click here to become a part of this growing video network.

More from Entrepreneur
Entrepreneur Select: A Fund For Entrepreneurs, By Entrepreneurs

Entrepreneurs require more than just money, which is why we aim to empower you, as well as act as a catalyst for value creation.

Entrepreneur Insider members enjoy exclusive access to business resources for just $5/mo:
  • Premium articles, videos, and webinars
  • An ad-free experience
  • A weekly newsletter
  • Bonus: A FREE 1-year Entrepreneur magazine subscription delivered directly to you
Make sure you’re covered for physical injuries or property damage that occur at work by
  • Providing us with basic information about your business
  • Verifying details about your business with one of our specialists
  • Speaking with an agent who is specifically suited to insure your business

Latest on Entrepreneur