Overview

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.

You will get $300 FREE bonus (see the table below) when you purchase the Commercial Property Lease or Buy Analysis Calculator.

Free Bonus Value
1. Lifetime Free Update $299
Total Bonus $299

Pay less if you DON'T need the bonus. Click here to learn how to pay less without bonus!

Here is a screenshot that will give you a better idea that what you need to do and what this Commercial Property Lease or Buy Analysis Calculator can do for you.

Commercial Property Lease or Buy Analysis Calculator

Main Features

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.

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.

This Lease or Buy calculator suits not only business owners but also property consultants.

Things You Need to Know

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."

This calculator is built in Microsoft Excel worksheet. You need to have Microsoft Excel® 2007 & Above for Microsoft Windows® OR Microsoft Excel 2011 & Above for Mac® to use it.

All the calculators (paid and free ones) on this website are password protected. If you need the unprotected version of any calculator a fee will apply. The advantage of the unprotected version is that you can freely edit the tool without any limit although we still own the copyright of the unprotected calculator. Please note you cannot re-distribute our calculators without a written approval from us even for the ones with your modification or customization. In addition we are not going to provide any support on unprotected calculators with any modification or customization.