Characteristics

• Available capital, property location and real estate values all affect whether you lease, purchase or exchange office space. Companies with limited resources may opt for a long-term lease or exchange. These options usually require less upfront capital to get started.
  
  

Considerations

• The type of business often determines space requirements and whether a long-term lease, sale or exchange is most appropriate. For example, a dentist's office has very specific requirements for a commercial location. A significant amount of time and effort goes into building the space to suit a dentist's needs.
  
  

Costs

• The long-term costs associated with leasing are higher when compared to a sale or exchange. Lease payments include the landlord's profits and expenses, while each facility you own adds value by increasing equity. Each option gives you the opportunity to deduct rent and depreciated business property from your tax return.