Should I Lease or Buy My Business Space in Myrtle Beach?

Last updated: November 2026

Lease if you want to keep cash in the business, stay flexible or aren't sure the location is right long term. Buy if you have the capital, plan to stay for years, want control over the building and are ready to handle maintenance and risk. Many owners lease first, then buy once the business is stable.

This is one of the biggest decisions a business owner makes about real estate. Here's how to think it through for a business on the Grand Strand.

This guide is part of our guide to buying or leasing commercial property in Myrtle Beach.

In this guide:

• What are the advantages of leasing?
• What are the advantages of buying?
• What are the risks of each?
• How does financing affect the decision?
• What are the tax considerations?
• How do you decide?
• What does it cost to get into each option?
• What terms should you know?
• Can you lease now and buy later?
• What else do people ask about this?
• Ready to talk about commercial space on the Grand Strand?

What are the advantages of leasing?

Leasing keeps your capital working in the business. You'll usually need a security deposit and possibly some build-out costs, but not a down payment. That cash can go toward inventory, staff or marketing instead.

Leasing also gives you flexibility. If the location doesn't work, your business outgrows the space, or the area changes, you can move when the lease ends. And in some lease types, the landlord carries the risk of major repairs like the roof or structure.

What are the advantages of buying?

Buying gives you control and builds equity. You decide how the building is used and improved, you aren't exposed to a landlord raising rent or selling to someone else, and your loan payments pay down a debt instead of building someone else's equity.

Some owners buy a building with more space than they need and lease the rest to other tenants. Others hold the property in a separate entity and lease it to their own business. Talk to your CPA and attorney about how to structure it.

What are the risks of each?

Leasing's main risk is losing control. Rent can go up at renewal, the landlord may not renew, and you may invest in build-out you leave behind.

Buying's main risk is concentration. A large share of your capital ends up in one building, and you're responsible for repairs, insurance, taxes and vacancy if you move or the business struggles. On the coast, insurance and storm exposure deserve a close look before you buy.

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How does financing affect the decision?

Owner-occupied buyers often have financing options built for small businesses. The SBA 7(a) and 504 programs are common choices, and they can lower the down payment compared with a conventional commercial loan.

Commercial loans are still different from home loans, with more focus on business cash flow and often shorter terms. Read how commercial financing differs from a home loan.

What are the tax considerations?

Leasing and owning are taxed differently. Rent is generally a business expense, while owners generally deduct interest and depreciation over time. When you sell an investment or business property, capital gains and depreciation recapture can apply, and a 1031 exchange may defer them.

These rules depend on your situation, so work through them with your CPA. See how a 1031 exchange works.

How do you decide?

Ask yourself a few direct questions.

• Am I confident this location will work for many years?
• Do I have the cash for a down payment and reserves without starving the business?
• Am I ready to manage a building or hire someone to?
• Would owning the building fit my long-term plans, including retirement or selling the business?

If most answers point to yes, buying may make sense. If not, a well-negotiated lease with renewal options can give you time. See how long commercial leases run and what you can negotiate.

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What does it cost to get into each option?

Up-front costs look very different. Leasing usually means a security deposit, possibly first month's rent, your share of build-out above any tenant improvement allowance, and attorney fees. Buying usually means a down payment, closing costs, lender fees, inspections, a survey, an appraisal and often a Phase I environmental report.

Ongoing costs differ too. As an owner, you pay the mortgage, taxes, insurance and all repairs. As a tenant, you pay rent and whatever the lease passes through. Compare both over the number of years you expect to stay, not just the first year.

What terms should you know?

• Owner-occupied: Property where your business uses most of the space, which affects financing options.
• Right of first refusal: A lease right to match an offer if the landlord sells.

Can you lease now and buy later?

Yes, and many owners do. Some negotiate a right of first refusal or option to purchase in their lease, so they have a path to buy the building they're already in. Others lease until the business is established, then buy elsewhere.

An agent can show you both paths side by side.

Related guides:

• How Is Financing Commercial Property Different From a Home Loan (SBA 504 and 7(a))?
• What Is a Triple Net Lease, and How Does It Affect What I Pay in Myrtle Beach?
• How Long Are Commercial Leases in Myrtle Beach, and Can I Negotiate the Terms?
• How Do I Buy or Lease Commercial Property in Myrtle Beach?

What else do people ask about this?

Is it cheaper to lease or buy commercial property?

It depends on the property, financing, how long you stay and what happens to values and rents. Compare total costs over the time you expect to stay.

Can I use an SBA loan to buy my business's building?

SBA 7(a) and 504 loans can be used to buy owner-occupied commercial real estate if you meet the program's requirements. Check SBA.gov and talk to a lender.

What is a right of first refusal in a lease?

A clause that gives you the chance to match an offer if the landlord decides to sell the property.

Should my business own the building directly?

Many owners hold the property in a separate entity. Ask your CPA and attorney about the right structure.

Can I lease part of a building I buy?

Yes. Some owners buy more space than they need and lease the rest, if zoning and financing allow.

This article is general information, not legal, tax or financial advice. Rules and requirements change. Talk to a South Carolina attorney, CPA or lender about your situation, and confirm current requirements with the agency involved.

Ready to talk about commercial space on the Grand Strand?

Whether you are leasing your first space, buying a building for your business or adding an investment property, a short call with our team can help you sort out the options and the next steps. No pressure, and no commitment.

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