Below is an example illustrating the cost comparison between owning versus leasing a property

Own

Purchase Assumptions
Size (Square Feet) 10,000
SBA Guarantee & Packaging Fees $53,000
Total Project Cost $2,053,000
Start-Up Costs
10% Down Payment $200,000
Loan Fee/Cost (Financed)
Total Start-Up Costs $200,000
Monthly Costs
  PSF Total
Mortgage Payment (P&I) $1.28 $12,803
Operating Expenses $0.10 $1,000
Propery Taxes $0.21 $2,083
Total Monthly Costs $1.59 $15,886
Monthly Ownership Benefits (Estimated)
Tax Benefits
Interest Deduction (10 yr Avg.) $3,3673
Operating Expense Reduction $390
Propery Tax Deduction $813
Depreciation Benefit $252
Other Benefits
Rental Income $0
Avg. Appreciation 2.0%/$3,422
Total Ownership Benfits $8,549
Total Effective Monthly Cost $7,337

Lease

Lease Assumptions
Size (Square Feet) 10,000
Lease rate per sq ft/mth NNN $1.00
Monthly Lease $10,000
Start-Up Costs
Prepaid Rent $10,000
Security Deposit $10,000
Total Start-Up Costs $20,000
Monthly Costs
  PSF Total
Lease Payment $1.00 $10,000
Operating Expenses $0.10 $1,000
Propery Taxes $0.21 $2,083
Total Monthly Costs $1.31 $13,083
Monthly Ownership Benefits (Estimated)
Tax Benefits
Lease Deduction $3,900
Operating Expense Reduction $390
Propery Tax Deduction n/a
Depreciation Benefit n/a
Other Benefits
Rental Income $0
Avg. Appreciation 2.0%/$333
Total Lease Benfits $4,623
Total Effective Monthly Cost $8,460

Ownership Analysis Summary
Annual Effective Cost Difference $13,474
Average Annual Princpal Pay down $40,623
Annual Wealth Creation $54,097
15 Year Wealth Creation $811,460

The above is a sample scenario for discussion purposes only. Actual costs will vary for each property based on a variety of factors such as market lease rates, property tax rates of that county, per sf sale price of property, etc

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