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Entries Tagged as 'Buying Office Space'
May 7
Surely if your business is firmly entrenched in the market, you have
significant financial resources, and you plan on keeping your business in the
area for many, many years to come, buying your commercial office space may be the way to house your business. Yet, you may still want to consider renting an
office space. Here's why:
- Lower Initial
Investment - You won't tie up money you could use in your business. Many businesses get a higher return from their core business than they would from buying an office and the associated savings and appreciation.
- Fixed or Adjustable -
Every homeowner knows the pros and cons to this option. Do you
want to pay the same amount every month for your property, or do you want
to gamble with the potential of rising office rental rate costs. Ultimately, the
market will tell dictate what your business will pay for rent. In a down
economy, the idea of renting can be lower cost and offer significantly
lower risk. The unfortunate Catch-22 here is that if the economy is good,
your business will flourish, but you may end up paying some of that profit
back in rent. But, then again, isn't that a nice problem to have?
- Flexibility - Renting your office space
also affords a business the opportunity to grow their office space
along with the growth of their business. As your business expands with
staff, operations, and more; renting an office will allow
you to buy more or less office space as the situation dictates
accordingly. This level of flexibility can provide a business owner with
the peace of mind of knowing that they're not locked into an enormous space
if they don't need it or too small of a space if their business has
outgrown it.
More Information on the decision of whether to buy or rent office space.
"OfficeFinder, LLC" is the leading web
based office space referral and information network, with highly qualified
local office space leasing and sales professionals in over 550 markets.
Contact us today to find the right location,
negotiate the best price, and avoid costly mistakes. We would love to help
your business find the best property available!
Find Office Space
By: James Osgood
Buying Office Space , Office Leasing Tips , Office Rental
Apr 16
So business is going strong, and now you are beginning to wonder if it’s time to stop
pouring all that office rent money into someone else’s pocket rather than
investing in office
space of your own. After all, commercial mortgage interest rates are still
quite low, and your company’s success indicates a bright future ahead. As you
consider this important shift in business strategy, here are some things to
consider.
- Is now really the time? We
ask this question not just with regard to interest rates, but also with
regard to your company’s future growth. If your business continues to
expand, will you find yourself, in another few years, running out of
office space? If you are still in a period of growth, sticking with
leasing may be preferable, because it provides more flexibility for future
expansion. You should only purchase office space if you are quite certain
that your future needs will be met by the space you purchase.
- Where do you want your
headquarters? Here we are thinking “bigger picture.” Think beyond whether
the area you are considering is a prestigious, or up-and-coming, location
for your company’s headquarters. It would be wise to do some research—and
we can help—about business trends in your city. You need to think not just
about what things are like now, but what they might be like in the future.
- Is the area of town you are considering going to be the right place for
your business in twenty, or fifty, years, not just for the next five? Will
the area’s infrastructure (roads, bridges, restaurants, etc.) meet your
needs in the years to come? If you are counting on some appreciation in
the building’s value over time, it’s important to make sure you are buying
in an area that will continue to grow.
- Is this a good financial move
for you? In addition to paying a mortgage company instead of a landlord,
you will need to factor in your upcoming capital needs and cash flow
considerations, as well as the tax consequences of making the purchase.
- Are you ready to be your own
landlord? This is a very important consideration, because when you lease
space, it’s easy to call the landlord if the toilet backs up, or expect
that the icy sidewalks will be cleared by the time you show up for work.
If you own the property, those responsibilities, and more, will now be
yours.
These are just a few of the questions that you should be considering as you
discern whether to lease or buy in this market. We have more information on lease vs. buying office space
and we suggest you contact us to conncet with on of our local pros to further discuss this exciting possibility.
Find Office Space
By: James Osgood
Buying Office Space , Lease vs Buy , Office Space
Feb 5
Loopnet put together a very good info-graphic
(below) on leasing vs. buying trends in commercial real estate. It is very interesting
from the prospective tenant’s viewpoint as they lease new or renew
space for their business or decide to buy a building to house their business. While it does us a lot of averages, it is a good
overview of what has been happening recently in the commercial real estate markets
in the US. In particular, over the past two years rental rates have only
dropped 3% while sales prices have dropped 15%. It is my opinion that now is a
good time to hit the bottom of the market in either signing a long term office
space sales or buying an office building for your business. More on Lease vs. Buying office space to help decide if it would be a good or bad move for you.

Find Office Space
By: James Osgood
Buying Office Space , Lease Negotiations , Lease vs Buy , Office Space Negotiations
Apr 14
I spent the day yesterday at the Commercial Broker's Association (CBA) Commercial Real Estate Form. A great program on relevant issues in today's commercial real estate markets. The one presentation that hit hard was Market Knowledge: Strengths and Weaknesses in Different Segments of the Commercial Real Estate Market presented by Dr. Jim DeLisle, University of Washington Director, Graduate Real Estate Studies at the Runstad Professor of Real Estate.
My take away: The Commercial Mortgage Backed Securities market, where commercial mortgages were bundled and sold, has pretty much evaporated. The only loans that are being made and will continue to be made are portfolio loans, where the lender actually keeps the loan in their portfolio. The result... very few mortgages are being written. It is much more difficult to obtain a commercial mortgage and the loan to value; the present value, is in the neighborhood of 40% - 60%. With many commercial mortgages rolling over in the near future, new financing will be a problem. I expect there will be many good opportunities to purchase commercial properties at attractive rates.
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About Buying Office Space
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Buying Office Space , Commercial Real Estate , Office Building Sales , SBA Loan
Feb 1
According to a recent CoStar Blog post "Banks reported that commercial real estate markets displayed mixed results - still mostly negative - but that leasing markets and investment exhibited increasing signs of recovery, while nonresidential construction remained weak."
This doesn't mean that a full recovery is near, but any signs of improvement are good.
"We expect that the worst of the commercial credit cycle is behind us but
we expect a few more quarters of uncertainty and choppiness in
commercial charge-offs and non-performers." Richard D. Fairbank, founder, chairman, and CEO, Capital One Financial Corp.
Via: OfficeTimes Blog
Buying Office Space , Office Space , Office Vacancy Rate
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