What stage does it make sense to stop renting and buy commercially?
I’ve been renting a commercial unit now for 10years, previously it was very reasonable more recently rent increased by 40% still reasonable for location and below market average for area (roughly 7% of my turnover).

At what stage should I try &amp; buy a commercial property instead of rent?
[{"id": "fxkegdm", "text": "Talk to a loan officer and check the financials for a SBA loan versus what you currently pay in rent. Only requires 10% down payment", "replies": [], "depth": 1}, {"id": "fxkm2d8", "text": "Is owning the building more important than expanding your business?  That is something you need to answer.", "replies": [{"id": "fxnax9m", "text": "Really good point thanks for your input - although my business is quite profitable for a small service based health industry the resale value isn\u2019t valuable long term", "replies": [], "depth": 2}], "depth": 1}, {"id": "fxl49gs", "text": "The question you are asking, in my view, is what is it going to cost to buy (down payment and how much more your regular payments will be). How will the asset appreciate against your down payments (IRR calculation) and where would you alternatively put that capital.\n\nThere are other tax considerations, because of course land can not be depreciated, while the building can (albiet slowly) if you are the owner. \n\nIt's pretty complex", "replies": [{"id": "fxnb2w7", "text": "Yes, it\u2019s not a simple - question for sure! Thanks for your input.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fxl4j8o", "text": "That is going to vary by market.  Probably better to rent in flyover areas where rents and values barely track inflation.  Places like the west coast you are probably better off buying.  I've seen business be more profitable off their RE investment than their actual business.  You also get the property tax benefit of Prop 13 if you are a CA business.  \n\nLook at the tech companies like Google, Microsoft, and Twitter that have built their own campuses in the Bay Area.", "replies": [], "depth": 1}, {"id": "fxlc5xb", "text": "I created a couple of calculators for this exact reason. You can take your monthly payments and see how much you could afford to buy at that same amount. If you have the capital to make a downpayment, buying is almost always worth it. \n\nHere are the calculators: https://www.tylercauble.com/commercial-calculators", "replies": [], "depth": 1}, {"id": "fxlvk4s", "text": "You need to do a cost analysis of renting to buying, and also analyze if the capital is better spent on the building or spent in another area of your business.\n\nAlso I\u2019m a commercial lender. Pm me if you need help financing", "replies": [], "depth": 1}, {"id": "fy3sd59", "text": "Our bank finances SBA loans nationwide. Depending on the property type and your companies ability to cash flow the debt, we can go up to 90% LTV.\n\nFeel free to PM me if you need any assistance.", "replies": [], "depth": 1}]