Build, Buy, Or Lease? What Makes Sense For Your Business?

Posted on 1/20/2026, 12:33:26 PM

Finding the right premises can be a crucial step for business owners. While more and more companies are operating remotely, this is not a viable option for all. If you’re launching a new business, you’re keen to move in line with growth targets, or you’re interested in building or buying commercial property as an investment, it’s wise to explore all the options available to you. In this comprehensive guide, we’ll discuss the pros and cons of building, buying, and leasing. 

Building business premises

Building new premises for your business is a big step, but it can pay off handsomely if you make the right decisions. Putting money into bricks and mortar can be lucrative, especially in the long term. There’s also an unparalleled sense of freedom when it comes to building your own site or base. You have control over everything from the layout and position to the interior design and external facade. 

Key factors to consider when building new commercial premises include your budget, the type of property you need and want, your chosen location, and the scale and timeframe of the project. It’s often more challenging to budget for a building project, as costs can run over, and you may be dealing with estimates and predictions, rather than fixed fees or confirmed costs. There’s also a risk that external factors can impact costs, such as a rise in prices for materials or additional expenses related to delays in the supply chain. The location you choose will also impact prices. If you need to be in the center of a city, for example, prices may be significantly higher.

One of the main benefits of building business premises as a company owner is putting your stamp on the design and creating a purpose-built site, facility, or building. If you take this route, it’s important to capitalize on these advantages. One way to do this is to work with an experienced building consultancy firm that specializes in similar projects and has the vision and expertise to deliver results. Look for companies with a proven track record, read verified reviews and client testimonials, and view case studies, portfolios, and galleries. Multi-faceted agencies that offer additional services, such as engineering and project management, can help you streamline the build and save time and money. 

Your business objectives will also affect whether building makes sense for you. Building may represent an excellent long-term investment, but if your primary goal is to generate as much profit as quickly as possible, leasing may appeal more. 

Buying commercial property

Buying commercial property for your business may represent the middle ground if you’re not convinced that building or leasing is right for you. Buying enables you to move and get settled quickly and it also provides golden opportunities to invest capital in an asset that is likely to grow in the future. Buying means putting money into your own pockets rather than paying a landlord or management company. 

Cost may be a deciding factor for many business owners. The outlay is higher than leasing when you buy, and it can take time to recoup money and reduce expenses. You may also find that your budget means you can access a much more restricted range of sites or properties. If you can afford to buy, however, purchasing a site, office, store, or base gives you flexibility in terms of what you do with the property, how you brand the space, and how you use it both in the present and future. If you rent, you’ll be limited by the terms of your agreement. 

Leasing business spaces

Leasing is a popular option for businesses because it offers flexibility and short-term affordability. At a time when over 20% of new companies fail within the first 12 months, renting commercial spaces presents a less risky alternative to buying and building. It gives new business owners the opportunity to scale if the organization thrives, or terminate a contract when the lease expires if the business is unsuccessful. 

Another key advantage of leasing commercial premises for business owners is saving time, money, and effort on maintenance and upkeep. If you lease an office, for example, you may pay a service fee, but you probably won’t be liable for remedial costs if the building needs repairs or upgrades, for example. If you build or buy, you’re responsible for running costs, maintenance expenses, and property repairs. You will need to factor in upkeep and repairs in your budget. 

While there are clear advantages to leasing for some business owners, there are drawbacks. Cost is a major disadvantage for many. As the demand for rentals has increased, prices have risen significantly. Prices rose by over 5% in the retail sector in 2025. 

What is best for your business?

There are pros and cons of building, buying, and leasing for most businesses, but one option may suit you better than others. It’s crucial to outline your short and long-term objectives, be clear about your budget, and think about what you want from a business base or facility before making any decisions. It’s also beneficial to research, explore different opportunities and propositions, and take advantage of expert advice from commercial real estate agents, building consultants, and project managers. Gathering and analyzing data and information, weighing up the pros and cons of different options, and thinking about your vision for your company can help you determine which route makes the most sense. 

Finding the right premises for a business is important for many company owners. If you’re considering building, buying, and leasing as options for your firm, it’s wise to take your time to visit potential sites, find out more about the different options available to you, and think about how you plan to use commercial spaces, sites, or properties both now and in the future. Make decisions based on your targets and goals, rather than what other companies are doing. If you’re aiming for long-term growth and investment, for example, you may find that building and buying are more attractive than leasing.