Bellevue, WA – June 7, 2010 – CommercialCondos Inc. (CCI), a website dedicated to connecting buyers and sellers of commercial condominiums, today announced that it has entered into an agreement with OfficeFinder.com, one of the largest networks of highly qualified experts in office tenant representation working locally in over 550 markets, to supply OfficeFinder agents with integrated access to CommercialCondo.com’s premier listing service and CCI website visitors with even more local experts to assist them in meeting their needs.

As part of its agreement, OfficeFinder's network of agents can now post properties and receive leads on those properties directly through www.CommercialCondos.com. CCI currently features over 400 current property listings, but expects that number to grow as it adds quality network agents, like OfficeFinder, and brokerages to its portfolio of clients.

"OfficeFinder's networks of agents are all specialists in tenant representation," said CCI President and Co?founder, Derek Doke. "It will be great to have their local expertise available to our visitors and accessible through our 'Find A Broker' tool. This agreement is a win-win for both sides as it expands our available local expertise and the potential for adding additional commercial condo listings available for sale or lease."

OfficeFinder President and Founder, James Osgood, said: "We feel our network will benefit greatly in working with Commercialcondos.com and utilizing their listing service which is hyper-focused in the markets our agents specialize in. We feel this agreement will extend the reach of our agents and increase the flow of qualified leads for both entities."

As part of the agreement, Osgood has accepted an advisory board position with CommercialCondos Inc.

"OfficeFinder has been in business since 1995 and has done an incredible job of gaining market share in the tenant representation niche vertical market," said Doke. "We believe Mr. Osgood is a great addition to our advisory board, and believe there is a great benefit to both of our organizations in working together at this level moving forward. Our goals are very much aligned with no direct competitive aspects in conflict."

CCI's service model is focused on an untapped and growing trend in the field of commercial condominiums where subdividing commercial real estate allows current property owners to reposition their properties into more marketable and financeable sizes, allowing more business owners and investors the opportunity to buy versus lease.

CCI offers annual memberships to both individuals and real estate firms, allowing unlimited postings, management tools and bulk uploading of properties for individuals with single locations and brokerages with geographically displaced agents.

"While at our core CCI is a listing service for commercial condominiums, our model goes far beyond by focusing on marketing and education programs that pull targeted buyers through to brokers and places brokers in front of buyers," said Doke. "CCI provides tools and resources that empower buyers, agents and owners interested in conducting commercial condominium transactions."

In addition, CCI will be launching an accredited continuing education program designed around commercial property ownership directed to key professional service verticals, such as dentists, physicians, chiropractors, accountants, attorneys, financial professionals and other core professional service groups.

In our office space Blog we have discussed a great deal in the past about how troubling of a time it is for the Commercial Real Estate market thanks to overly abundant unemployment and the recession.  With every challenge there is usually an opportunity.  In this case, a down markets is a great time to buy commercial real estate.  The old adage of buy low and sell high can be applied to this time period. Of course, it is always scary to get into an investment in a down market, but if you can do it now, you will undoubtable be near the bottom of the market with no where to go but up.

One of the best ways to get into commercial real estate is to buy property that your company can use. One of those ways is to buy a commercial condo. The SBA may even be able to help too with a loan guarantee that would allow you to only put 10% down. A great use of leverage.

Here is a primer from CommercialCondos.com to get you started in understanding the  concept.

"Many people understand what a residential condominium is because the concept has been around for generations. In order to understand commercial  condos (also called "non-residential" condos), we can apply many of the residential guidelines, but with the added benefit of potentially increasing profits for your business.

Following is a simple list of frequently-asked questions that will give you a quick and thorough education about commercial condos.

As a business owner who currently leases my workspace, how would I benefit from buying that space?

The most obvious benefit is that you'll own the property rather than rent it, so over time it will gain equity and become a valuable long-term asset. If you leased your 1000 square-foot work space for $30 per square foot for 10 years, you would spend $300,000 (excluding any annual increases) during that time, but all that equity would go to your landlord instead of you. If you'd purchased the space, each year you would be paying yourself and increasing your equity in the property. You could also have multiple tax benefits that you'd not be able to take as a tenant, such as mortgage interest, property tax deductions and deductions for repairs and depreciation. As an owner rather than a tenant, you'll have complete autonomy and freedom to create the exact space you need for your work. You can redesign and remodel to your heart's content.

What are some of the less obvious benefits?

If you're moving into a new location, a lease option (leasing now with an option to buy later) can lock in the purchase at today's price. And if you purchase more space than you need, you can rent out the remainder. Those rental units will pay for themselves while building equity for you.

How do I purchase a commercial condo?

Many business owners don't realize that while commercial banks are hesitant to make loans, the Small Business Administration (SBA) is actively offering up to 90% financing to established businesses for the purchase of office, industrial and retail space. There are many financing options available, but the financing can be complicated because the lender won't necessarily understand what type of property it's dealing with. Is it residential? Commercial? Retail? What kind of loan is it? That's why we suggest that you work with a trusted banker or broker who can bring in a team of experts (accountants, lawyers, architects, as needed) to help you find the best loan and the best property.

Will I have to pay property taxes?

Yes, because you are the owner of a piece of property. But like a home loan, the property taxes can be rolled into your monthly loan payment.

Some residential condo complexes have homeowners associations and dues to pay. Is this true with commercial condos?

Yes, there will be an HOA (homeowners association), and there will be monthly dues. But these dues pay for property maintenance, landscaping, insurance, professional management, and more. If you owned a house, you would also be paying for these things. One advantage of an HOA is that it guarantees that these maintenance issues will be addressed and that the property will be well cared for.

How are the common areas like parking lots, lobbies and walkways maintained?

Property maintenance will operate the same way it did when you were a renter. The developer, or owner of the property, will turn the management responsibilities over to the HOA and the board of directors (which is usually made up of individual owners like yourself). Usually a property management firm will be hired and paid from the HOA funds.

What does the board of directors do, and how involved will I need to be?

The board makes day-to-day decisions about caring for the property. For example, the parking lot may need to be re-paved, or the sprinkler system may need to be upgraded. The board prioritizes these various needs, seeks bids from vendors and makes sure the work is completed. As an owner, you may choose to serve on the board or not. It's not required."

If you are interested in finding out more, request assistance finding commercial real estate for sale from our top local buyer representatives.

Also check out our lease vs buy and financing alternatives articles.

Your business location should be tailor-made to fit with your company budget, spacing requirements and ease of operation. For some business owners, leasing affords a sense of freedom and relieves the financial burden of a down payment, yet may be too restrictive for some kinds of operations. The decision to buy a piece of commercial property offers its own set of risks and rewards, and should be considered carefully before entering into a mortgage contract.

Leasing Commercial Space

1. Cost Effective

Leasing a commercial space will usually require a one to two month move-in deposit, making the rental space a cost efficient way to do business. New business owners may be strapped for cash, and by leasing, rather than purchasing, your storefront or office is cost effective to set up shop with minimal funding.

2. Flexibility

Leasing a commercial space gives the entrepreneur plenty of room to grow, downsize or change locations. Although once you sign a lease, you are locked into a fixed amount of time to make the lease payments, the terms may be only a matter of months to be released and start over in another location.

3. Freedom

Setting up shop without the burden of a mortgage to pay allows a sense of financial freedom. Albeit, a purchased piece of commercial property could be leased or sold to another, there could be months before the owner receives any income from the property. A hefty mortgage may also interfere with business profits and may demand downsizing of personnel.

4. Maintenance

A leased office or shop has a landlord to lean on, taking away tedious responsibilities with the plumbing, electricity and security. In a leasing situation, any repairs or legal liabilities are left in the hands of the building management team.

5. Subletting

In some situations, you may sublet your leased office space to another. However, this must be cleared in writing from the management office, and careful attention given to their rules and regulations for renting out the space.

Buying Commercial Space

1. Secured Location

Buying a piece of commercial property adds assurance that the space is secured and cannot be given to someone else. In a leasing situation, when the lease expires, the renewal process may not have the same initial terms, thus proving unfavorable to renew. However, when you purchase, your prime location is secured.

2. Equity

As with a residential piece of property, a commercial owner may take out cash against the mortgage. In an emergency financial crisis, having a mortgage to borrow from lends a sense of security and provision of funds. Most commercial purchases will require 20 to 25 percent down on the purchase price, giving instant equity to the business owner.

3. Remodeling

When you have bought a property, it is your to do with as you wish. Remolding, expansion and reconfiguration are yours for the taking. The ownership allows the business structure to be molded around the enterprise for a perfect fit and usage of space.

4. Tax Deductions

The interest on a commercial loan is tax deductible, with allowances for deducting any depreciation.

5. Lease Your Excess Space

If you own the property, you may lease your excess space without any restrictions from a third party over your head.

Article Source: Is it Better To Buy Or Lease Commercial Space For My Business

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For a more detailed analysis see Lease vs Buy office space on OfficeFinder.com

According to a recent article in the North Bay Business Journal, now is the time to act to take advantage of the bottom of the market:

"The title of the recent Sonoma State University economic outlook conference “The Time is Now” couldn't have more meaning than it does with the current office real estate market. We are at the bottom of the market, and now is the time to take advantage of the current opportunities before it’s too late."

I wish it were true, but as far as I can tell we have a ways to go before the actual bottom is reached in the North Bay or anywhere else. Now, that does not mean that now is not a good time to negotiate a great office deal.  Landlords are hungry and hurting and some fabulous lease of purchase deals are available to those willing to dive in. Until the unemploymet rate starts to drop, the bottom is still in the future, probably within a year or maybe even two.

Get help finding a great office deal

Guest Post: In the past, real estate appreciated consistently, and created a source of wealth because of: appreciation, depreciation, debt relief, and cash flow. Real estate was often acquired with a 20% down payment and the remaining 80% balance was financed. Properties didn’t always provide cash flow at the start of the investment because of the amount of financing that was part of the acquisition equation. However, since properties were generally going up in value, that 80/20 leverage was a good thing; the returns may have increased because of appreciation.

Times certainly have changed. The real estate market is continuing to decline and many believe the bottom of the market seems at least a couple of years away. According to Mike Scott of Dupre + Scott Apartment Advisors (a Puget Sound apartment research firm) appreciation in real estate over the next several years may be nominal. According to their report, getting a decent rate of return on investments isn’t just around the corner. They indicate it could be fifteen to twenty years away.

The question is: if we can’t rely on appreciation in the near term does that mean we should avoid real estate or real estate related investments? Not necessarily. What it does mean, is that we need new investment strategies that make the most of current market conditions.

In the old real estate world when we referred to ROI we meant: RETURN ON INVESTMENT. Today, with the collapsing real estate marketplace, people are more concerned with capital preservation rather than asset growth. In the new economy, ROI has a completely new meaning: RELIABILITY OF INCOME. With the economy changing the playing field, cash flow has become the sought after benefit, rather than appreciation or depreciation. It has become very clear that investment decisions based on the old model may need to be rethought.

Just because the economic landscape has changed doesn’t mean that there aren’t some viable investment options. One of the many opportunities afforded investors using qualified funds (IRA, Roth, etc.) is that of acquiring real estate related products rather than real estate. Real estate related investments include offerings such as private Real Estate Investment Trusts (REITs) and real estate funds.

Since it looks like appreciation may be nominal for a number of years and since one can’t take advantage of depreciation in a retirement account, I think it makes no sense to base investment decisions primarily on investment growth due to appreciation and depreciation. Rather, one should look at investment products that base investment growth on cash flow. This is where real estate related products appear to have an advantage.

A number of real estate related products currently being offered fit nicely in a retirement account. Moreover, since many investment offerings are based on new lower real estate values, they may present cash flow opportunities that may not have been previously available.

I’ll leave you with a parting thought: “Real estate investing may have fundamentally changed for the foreseeable future. Isn’t it worth investing a few minutes of your time to consider the benefits and risks of all of your investment options?” You may be intrigued by what you discover.

If you want to take a look, Contact me.