Owner Occupied Commercial Real Estate – Should I Lease vs Buy My Place of Business?

Sep 28, 2013 by

I continue to research the web for resources to provide to my clients around owning their place of business.  Came across this on the Pepperdine University website.  Very good read on the perspective of owner occupied real estate.  See the case study here.  Obviously it is USA based so please remember to take into consideration the Canadian tax implications around commercial real estate ownership.  Love the conclusion because for me it’s all about wealth creation so we can use that extra wealth to generate more fun and joy in our lives.  Email me if you want to talk more about owning your place of business.

Conclusion

Owner-occupied commercial real estate provides an opportunity for large value creation in a variety of industries by providing an entrepreneur the ability to extract additional cash from his or her business in a way that is tax advantageous. A sophisticated entrepreneur can utilize real estate as a specialized vehicle to provide asset diversification, reduce tax liability, offset taxes from other investment sources, and provide the opportunity to leverage and acquire other assets. It is recommended that business owners work towards the goal of owning the real estate associated with their business and rent from themselves.