Is It Better To Buy Or Lease Commercial Space For Your Medical Practice?

The question of whether to buy or to rent commercial space for your practice has many elements. It’s one of the more important business decisions you make as the owner of the practice, so it’s important to understand the benefits of both sides. The best way is to weigh the benefits while considering your own goals and current resources. That way, you can make the most sense out of each real estate option with which you are presented.

Many individual practices find it beneficial to talk to advisors in the banking or real estate professions to help make this decision. Here are some of the benefits of owning and leasing commercial space so you can come prepared for such a discussion.


One of the clear benefits for leasing is that there’s no down payment involved. Some leases require a deposit, but this is hardly comparable to the large payments required to secure most commercial mortgages. With less cost up front, this means you retain more liquid capital. Since you’ll be leveraging against this capital, each penny you’re able to save is an opportunity for more freedom to access equipment leases and payroll loans you need to grow your practice.

Terms of some leases include repairs and maintenance costs. This is especially true of properties that are marketed toward medical organizations. Management companies who are experienced with other healthcare tenants provide the high standards of cleanliness and maintenance your business requires to be successful.

If you want to set up quickly, leases are probably advantageous. The leasing process for commercial space doesn’t take much time. In addition, many lease properties are move-in ready. One last thing to consider is that, in many markets, there are more properties for lease than for sale. That makes it easier for you to find something fitting the needs of your business.


One of the main benefits of owning a building is that you can grow your capital. Good purchases and good businesses grow in value over time. If you ever choose to sell, you can reap the rewards of your hard work and wise choices in the form of income.

Buying commercial property also gives you more control over the building. As long as you comply with local zoning ordinances, you have complete freedom to outfit your facilities in the way that benefits your business most.

There are more advantages on each side of the argument. There are also risks associated with each. Check with a banker or other related professional for more information.


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