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Owning vs. Leasing

Advantages of Owning vs. Leasing

Lower Monthly Cost • Usually, your total cost of ownership is lower than the cost to lease. In effect, by owning your space, you can fix your monthly/annual payment (with a fixed rate loan) and “eliminate the middleman” (your Landlord), who adds a profit margin on top of the costs of ownership. Take advantage of the currently low interest rates and favorable loan offerings to own a new unit and keep your monthly payment lower than a lease that will escalate annually at approximately 3-5%.

Equity Participation • Every dollar your property appreciates and every dollar applied toward the mortgage principal translates into a dollar of equity. By owning rather than leasing, you not only reduce your monthly out-of-pocket payment, you create an inflation-proof investment that will grow over time with equity and your condominium investment’s appreciation.

Further Reduce your Costs • In addition to being able to reduce costs with fixed annual rents, in Florida, a Landlord of commercial property is required to collect sales taxes (7% in Duval and Clay County) on all base rents and expenses collected: Common area maintenance, real estate taxes and Landlord’s insurance. As an owner, you do not pay sales taxes on the mortgage or expenses.

Tax Deductions • Your condominium investment gives you additional incentives through income tax deductions on mortgage interest, Real Estate taxes, and depreciation expenses.

Flexibility • If you decide to move, you can do so any time without penalty or the need to negotiate a lease buyout. If you do move, you can sell the unit or hold it and lease it out as an investment; whichever best suits your cash flow and tax situation at the time. If you need to raise cash, you can borrow against the equity in your unit.

Predictability and Certainty • Without a Landlord, you will never face a rent increase. You will never be forced to move to suit your Landlord’s plans. You will be able to invest in improvements, changes, new equipment, etc., without the risk of losing your investment when the lease terminates. Every improvement and maintenance step that you take will benefit you, not the Landlord.

Predictability and Certainty • Without a Landlord, you will never face a rent increase. You will never be forced to move to suit your Landlord’s plans. You will be able to invest in improvements, changes, new equipment, etc., without the risk of losing your investment when the lease terminates. Every improvement and maintenance step that you take will benefit you, not the Landlord.


Advantages of Leasing vs. Owning

Blue Way makes your options work for you and your company, whether your company chooses to Lease or Purchase. We give you the flexibility to have it “Your Way!” We have large or small spaces available to lease for your company that is (a) not structured to make capital investments in real estate, (b) for the company that is at a stage of growth in which they are uncomfortable committing to a larger space, in the event it doesn’t grow into that additional space, and (c) for the company that is hesitant to lease a space that they may soon outgrow due to growth projections.

We provide the following solutions for these scenarios:

  • Should your company choose to lease space and outgrow the space by an amount that exceeds 50% of the size of the original space, and if the space is available, we will provide additional adjacent space, and/or a new location and a new lease based on the terms of the original lease.
  • Should your company choose to lease space and later determine that condominium space is more desirable, provided that the space is at least equivalent in size and is available, we will sell a condominium space that is available in one of our Office Parks to your company, and upon delivery, we will release you from the Lease.