Originally Posted by Stitches
The rental space in my area tend to be triple net. Of which (to the best of my understanding) means your paying property taxes and repairs, etc... The building owners pass every cost onto the tenants.
I'd love to buy a shop. I think of it as owning your own home verses renting....in the end hopefully you will have made a profit on your investment instead of having nothing to show.
We rent in an "up and coming" area (which is code for a really crappy neighborhood that is just starting to be revitalized). While it would be nice to have a building to sell if you decide to close up shop, in my area there aren't people lining up to buy buildings. It would be a risky investment at best. Instead we decided to both work in the business, make enough to pay ourselves back in the first 5 years, and then if we need to sell, we can either part it out, or sell it as a successful business. No worries about selling a building or renting it to pay off a mortgage, and we come out with what we put in, plus some.
I am also renting space for my bakery in our new indoor farmers market that will open in a few months. The biggest positive about this space is that there will be traffic - which is just what a retail bakery needs.
Although most people don't think about it, getting someone to walk in your front door is one of the biggest challenges of running a standalone business. You have to be a destination worth traveling to, parking for, and getting out of the car for. That is a huge challenge, especially if your product is an impulse buy (talking of retail bakeries here, not custom cakes).