Buy or Rent? - Page 2 of 2

Buy or Rent?

running their business and adapting to change.”

Take national drugstore chain Walgreens, whose strategy is to build a store and then sell the real estate. “Like most companies, Walgreens would rather have capital for expansion,” says Ginsberg, who sees purchasing as an option for smaller, local companies that intend to stay in one location. “If they have the financial stability, these firms are more likely to buy as opposed to leasing.”

Ultimately an outright purchase of business property would best be considered by a company that’s been around for a few years and has concrete projections to grow significantly, Merino says. “If you know that you can manage your company effectively in the same building for 10 years or more without additional space,” he says, “then take a hard look at the cost differences between leasing and owning.”