Cam Appleton, Commercial Real Estate, Coldwell Banker Prestige Realty
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Should my business lease or buy its space?

Owning usually wins over longer holds if the value grows and you have the down payment. Leasing usually wins over short holds or when cash is tight. Enter your numbers to compare the total cost of each over the years you plan to stay.

By Cam Appleton, Commercial Real Estate Agent · Updated

Result

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Estimate only. Confirm with your lawyer or accountant.

How is it compared?

Example line chart: buying starts higher because of closing costs, then grows more slowly. Leasing starts at zero and rises with rent. The lines cross after a few years, so longer holds tend to favour owning.
Example shape only. Your numbers decide where the lines cross.
  • Leasing = total rent over the years, including increases.
  • Owning = closing costs + mortgage interest + tax, insurance and repairs + the return you give up on the down payment + selling costs − the growth in value.
  • Mortgage principal isn’t a cost: it comes back to you as equity when you sell.

What it leaves out: income tax (interest, depreciation and rent are treated differently), GST, and any rent from spare space. Talk to your accountant before you decide.

Before you rely on it

This is an estimate for planning. Confirm the numbers with your lawyer or notary and your accountant before you rely on them.

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Want me to check the real numbers?

Send me the listing, the proposal or your lease, and I can run them with you.

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