Lease or buy: when an SBA 504 loan beats renting
With about 10% down and a fixed rate for up to 25 years, owning your premises can cost close to rent. It only pays off if you stay put.
New Club Cocoon
Author
Leasing editor
14+ years experience
Maya spent a decade drafting and reviewing commercial leases for small retailers and professional offices before moving into writing. She reads every lease twice, once for what it says and once for what it leaves out, and she keeps a running list of the clauses that most often catch tenants off guard: compliance-with-laws language, uncapped operating expenses, relocation rights and personal guarantees with no burn-off. At New Club Cocoon she edits the lease terms coverage and writes the explainers that turn dense clauses into decisions a business owner can actually make before signing.
With about 10% down and a fixed rate for up to 25 years, owning your premises can cost close to rent. It only pays off if you stay put.
Maya Ferrante · · 7 min read
Landlord and tenant are both on the hook under federal law. The lease only decides who reimburses whom, so read that clause before the rent schedule.
Maya Ferrante · · 8 min read
The rate on the listing is the smallest number in the deal, and a decade of additional rent, fit-out and exit costs can roughly double it.
Maya Ferrante · · 8 min read
The label on a commercial lease tells you who pays for taxes, insurance and upkeep, and the real answer is always in the fine print.
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