Commercial Property Lease or Buy Analysis Calculator
This Commercial Property Lease or Buy Analysis Calculator examines the classic "Do we lease a commercial property or do we buy it?" scenario. It can help business owners to make the right decision by providing the sophisticated financial analysis to identify the financial advantage of one alternative over the other.
The Commercial Property Lease or Buy Analysis Calculator compares leasing costs and purchase costs in one analysis. The principal focus of the analysis is to choose the alternative that satisfies the business needs at the least net cost. To determine this, the present value of the after-tax cost and benefits of owning the property is compared with the after-tax cost of leasing the space. All other things being equal, the course of action with the least net cost is chosen. Because lease payments, operating expenses, depreciation and interest are deductible expenses, the analysis is made on an after-tax basis.
When performing the cost/benefit comparison across 30 years, the Commercial Property Lease or Buy Calculator factors in variables such as build cost, rental, outgoings, mortgage, purchase / selling cost, borrowing expenses, depreciation, risk, opportunity cost etc. It also considers the scenario if parts of the property are to be leased to other parties.
The Commercial Property Lease or Buy Calculator is co-developed with an Associate Member of the Australian Property Institute (AAPI) who has more than 25 years experience in the commercial, office, industrial and retail property industry. It has also been checked by a certified accountant. This Lease or Buy calculator suits not only business owners but also property consultants.
Here are the screen shots that will give you a better idea that what you need to do and how this Commercial Property Lease or Buy Calculator can help you as a business owner.
This calculator is built in Microsoft Excel worksheet. You need to have Microsoft Excel 2000-2010 and Microsoft Windows to use it.
View full size image of Commercial Property Lease or Buy Calculator
View full size image of Commercial Property Lease or Buy Calculator - 30 Years Details
According to the article "Buy or Lease? Commercial Property Decisions" by Wayne E. Etter and Fred F. Caldwell, buying generally has a higher risk than leasing a commercial property. This is becase "Business enterprises need space to conduct their business activities, but in most cases, real estate is not their principal business. If the firm leases needed space, it can adjust the amount of leased space as market requirements change. If the firm owns real estate, adapting quickly to changes in the market may be more difficult because of the time required to plan and construct a property or to buy a property when more space is needed or to sell the property when less space is needed. A retailer, for example, may prefer to lease space so that store locations can be changed in response to market shifts."
Purchase
Cost - Commercial Use
Commercial Use is any use in which a corporation or business or commercial entity derives or attempts to derive monetary gain and benefit from or for any third party, either directly or indirectly, from the use of the Calculator. This includes Government and Military entities, corporations, LLCs, sole-proprietorships, sole traders, home-based businesses, and internet-based businesses.
Free update and customization bonuses are included in the Commercial Use price.
$249.99 - Lifetime FREE update (Similar products on the market cost at least $500)
The Calculator or a download link will be sent to you via email within 24 hours.
File Type
.xls - Excel Spreadsheet
Version
1.0.2012
File Size
~230KB
Required
Microsoft Excel® 2002(XP), 2003, 2007, 2010
Microsoft Windows®
Refund Policy
No refund will be offered once you receive the calculator unless the calculator does not do what it supposes to do as specified on the Investment Property Calculator website. As all sales are final so please do read the spcifications on Investment Property Calculator website carefully to ensure that the calculator will meet your needs prior to purchase. However, if you, your accountant, or your financial advisor can prove that the calculations in the calculator are wrong and Investment Property Calculator cannot fix the errors, Investment Property Calculator will offer 100% refund!
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