Question 1

Is it better to lease or buy commercial property?

Accepted Answer

It depends on your hold period, financing, and how the property appreciates. Buying builds equity and can be cheaper long-term, but ties up a down payment and reduces flexibility. Leasing preserves capital and flexibility but builds no equity. This calculator quantifies both over your specific hold so you can compare apples-to-apples.

Question 2

What costs are included in owning?

Accepted Answer

Down payment, loan payments over the hold period, owner costs (property tax, insurance, maintenance), and the opportunity cost of the cash you put down — offset by the equity you recover at sale (sale price minus remaining loan balance and ~6% selling costs). The result is the true net cost of owning.

Question 3

What if I only plan to stay a few years?

Accepted Answer

Short holds usually favor leasing, because transaction costs (down payment friction, ~6% to sell) get spread over fewer years and there's less time to build equity or ride appreciation. Try lowering the hold period and watch the advantage shift.

Lease it, or buy it?

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