Lease versus buy is about cost and risk.
Some of the risks of buying are
- Loss of principal: If the neighborhood around the condo becomes less desirable (eg. rise in crime, natural disaster, nearby construction of NIMBY) or the condo is not effectively management, the value of the condo may drop below the purchase price. At the very least, unless you are willing and able to "owner" sell the unit in the future, you can expect a 6% cost to sell, which means if the condo doesn't appreciate by 6% you potentially lose this when it comes time to sell.
- Loss of liquidity: When you "own" something you have financed, you use up some of the credit which is available to you since you are on the hook for the mortgage and it is assumed you can not sell the property quickly.
- Exposure to property assessments: When you own, you are liable for special assessments like property maintenance and improvements which may be agreed upon by the condo management or levied by the local government. Assessments can be for things like new roofs, upgrades to utilities, buidling painting, or repairs. Condo managers are supposed to build reserves from monthly fees to handle the normal operation and maintenance. If there are unforeseen needs, special municipal property tax assessments, the majority of owners decide they want an improvement (eg. enhanced security) or the condo is not managed properly, as an owner you are liable for covering the costs. Lessors can be liable for many of these costs if the lease is a triple net lease.
Generally leasing is less risky because if you want out of a lease, you can walk away easier and more simply with less liability. This can result in lower costs when the lessor anticipates that their needs will change, has a better use for their available credit or has a high value for being shielded from changes in costs (ie. gross lease).
Lastly if the space or a portion of the space can be considered as business cost, there are differences in the tax deduction which can come with leasing or owning.
