If You’re looking to Lease Land rather than Buy, We’ve got You Covered

In obtaining a piece of land for commercial development, it’s probably more common to buy than to lease. But just like leasing an office or retail space for your business expansion, sometimes leasing commercial land to develop can make good sense from a business point of view for both landlord and tenant.

Henkle Schueler & Associates, our commercial realty brokerage arm, has a diverse portfolio of well-located land holdings of all varieties for clients looking to grow their business’ capacity or reach. Available parcels include farmland, empty acreage, lots in commercial business parks, as well as predeveloped lots in industrial business parks; we curate the most well-located, prime parcels of commercial land. And if we don’t already have what you’re looking for? Our commercial real estate brokers and sales agents will find it for you.

Why Land Leases Carry Some Advantages over an Outright Purchase

A land lease, or a ground lease as it is sometimes called, usually runs for a fairly long period of time – 50 years or more is not uncommon. Often, the tenant will construct a new building on the leased property, and under the lease terms they may then own the new facility, which may or may not revert to the landowner at the conclusion of the lease.

Sometimes, leasing a piece of commercial acreage in a prime location is a good idea for the leasing party simply because the land is not for sale, and renting it is the only way to get access to the site for purposes of development. These sites are typically part of business parks, which are large collections of land holdings that the owner typically sells or leases pieces of, creating a concentrated area of commercial industry. Some restaurant chains, for example, make extensive use of land leases for this reason.

The other aspect to leasing land that is not often the case with land purchases are that these lots are likely to have already been developed; infrastructure and access have already been dealt with. This makes the process of tailoring the land to your needs simpler, especially if an existing facility on the land lease is able to be retrofitted and you can avoid constructing an entirely new building. As well, with a commercial land lease, the owner is often involved in costs for any retrofitting and construction, which can serve to make the process less expensive.

There Are Immediate Financial Gains for Leasing Land

Leasing instead of buying land offers tangible financial benefits. Tax deductions, reduced risks, and a lighter maintenance burden make it an attractive choice. Additionally, lower upfront costs enable businesses to allocate their capital more strategically. Saving a few dollars upfront can help long-term financial health and operational agility. These advantages make leasing an attractive option for businesses looking to secure land for their operations. You can find land without the financial and logistical commitments of ownership.

Leasing land can often save business’ money on their taxes. Lease payments for land are often considered tax-deductible business expenses. This means that businesses can reduce their taxable income by deducting the lease expenses. Depending on your tax liability this could outweigh the relative cost of lease payments. As well when leasing land, the burden of property taxes typically falls on the landowner rather than the tenant. This can lead to significant cost savings, as property taxes can be substantial for landowners.

When buying land, the values can fluctuate due to various factors. Anything from economic conditions to local development trends can add or remove value. By leasing rather than buying, businesses avoid exposure to the potential risks of land value depreciation. If your land plummets in value, it isn’t on your group to worry about it. As well, leasing offers an exit strategy that is often more straightforward than selling owned land. When a lease term ends, businesses can choose to renew, relocate, or adjust their land needs. Businesses can plan based on their current circumstances and market conditions.

In many land lease agreements, the responsibility for land maintenance and infrastructure improvements, such as road repairs or utilities, falls on the landowner. This can significantly reduce the maintenance burden and associated costs for the tenant. With maintenance responsibilities typically outlined in the lease agreement, businesses have a clear understanding of their obligations. This predictability makes it easier to budget and manage expenses.

Leasing land requires a smaller upfront financial commitment compared to purchasing. This allows businesses to preserve capital. This can be invested in core operations, technology upgrades, or other strategic initiatives. Those resources can also go into marketing, hiring, or expanding product lines. This flexibility can enhance overall business growth.

How Land Leases Increase Capital for Both Tenant & Landlord

Leasing land rather than purchasing it also typically requires less up-front cash, which leaves the party developing the site with more funds to devote to other business needs. And with the right leasing terms, the landowner will sometimes put up the land as collateral to secure the loan to finance the construction, essentially becoming a partner in the business venture.

Landowners like ground leases because they allow them to retain ownership of the land while generating a steady income from rent. Tenants like land leases because it’s less up-front capital, and it results in much quicker access to the new land than does the purchasing process. We have a wide array of land for lease, both in our many business parks and as stand-alone sites for land development.

We’ve Collected an Extensive Portfolio of Prime Sites

From the time of our founding in 1935 as a farm brokerage, the Schueler Group has assembled some of the most desirable parcels of commercial land in the Cincinnati-Dayton and Northern Kentucky region, many of them located along major interstates, including 3,000 acres in more than 20 business parks.

If you’re looking to lease a well-located site on which to build a new business facility, we have plenty for you to choose from. We also have the expertise to assist you with working out the most favorable leasing terms, planning and obtaining financing for your project, and even designing and construction your new commercial facility for you.

Learn more about our business parks and contact one of our commercial real estate agents to discuss why we’re your best choice for leasing land in our region. Whether your business is in the commercial, industrial or residential market, we’ve got you covered.

Our Mission

Our business is your business. We are an established, respected and comprehensive real estate company headquartered in Southwest Ohio with the experience and teams necessary to be with you every step of the way on your next real estate project. Research by industry leading experts side-by-side with top-of-the-line construction and management services, this is what we bring to every project we are involved with. The Schueler Group wants to bring your project to fruition, on budget and on time.

Businesses Looking to Expand Should Plan their Growth Carefully

Growth is the goal of every business, large or small. But there’s a lot to manage when your company outgrows its space and capacity. Between buying or leasing a new property and renovating or constructing a new facility, it’s exciting but delicate – you have to cover all your bases. The best way for a business that wants to grow to successfully pull off their expansion is to start with a lot of research: market projections, local economic climate, budgets, timelines. That’s why it’s so important to consult with commercial brokers and contractors who are well-established in the area you’re growing into.

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