Many types of businesses operate out of commercial spaces. Whether your business needs a storefront, industrial or office space, if you’re launching a new business, or expanding an existing one, you’ll have to decide whether to rent or buy commercial real estate.

Are you better off leasing or buying? When you buy a property, you can either pay cash upfront or finance it with a loan. With a lease, you rent the property for a set term, at which point you must renegotiate if you wish to continue using it or move. Several factors go into choosing whether to buy of lease. Determining what is the right strategy for your business should include an examination of cash outflows, recurring costs and a determination of return on capitol invested in the business vs real estate.