Category Archives: Office Space for Sale

6 Differences Between Selling Commercial Real Estate And A Home

5 Differences Between Selling Commercial Real Estate And A HomeThe main difference between selling commercial real estate and residential real estate is the type and purpose of the property. This impacts the differences in selling styles.

Residential properties include single-family homes, apartments and townhouses. The owner of the property can live in the property or can rent it out space to enjoy rental income. There is typically an emotional element involved in residential real estate since it involves renting to individuals or families as their primary place of residence.

Commercial real estate refers to properties that are used for office, retail, industrial, and special purposes. There are also commercial properties used for residential purposes known as multi-family properties. The typical tenant of commercial real estate, other than multi-family, is a business or a corporation resulting in less of an emotional element.

Selling Differences

However, there are numerous differences between selling commercial real estate and residential real estate. The following comparisons provide a better idea of these differences.

1. Time to Sell

Recently, with the dirge in inventory for residential real estate, homes are selling within days of being listed, unlike selling commercial real estate which can take months to find the right investor.  There has also been a surge of residential property owners selling their homes to home buying companies such as WeAreHomeBuyers.comElement Homebuyers and similar companies that offer fast home sale and immediate cash, are commission-free and eliminate the need to upgrade the home before listing.

2. Returns-On-Investment (ROIs)

The return on investment is what helps investors determine a property’s profitability. With that said, what’s the average ROI in the US real estate market? The S&P 500 Index can answer this.

According to the Index in 2019 before the pandemic has hit the world, The US has an average return on investment of 8.6%. Of course, it depends on the type of rental property. For instance, commercial real estate’s average return is 9.5%. On the other hand, residential rental properties have an average ROI of 10.6%.

Based on the data above, investing in residential real estate properties can be more  lucrative than buying and leasing commercial properties. However, it’s essential to note that those figures don’t apply to all properties. That’s because vacancy rate, property management costs, and location are factors that also influence ROI. 

Investors trying to compare residential and commercial properties should also look at other metrics, such as cap rate and cash on cash return.

3.  Commercial Tenants Have More Money

Recently, retailers have faced increasing competition from e-commerce stores. Online stores offer products at a more affordable price and in a more convenient manner for consumers. Think about Walmart and Amazon. It’s no wonder why the retail sector hasn’t been performing at its best worldwide. Since many retail stores have shut down, the prices of commercial rentals have dropped drastically. In addition, due to the pandemic, finding qualified tenants for a commercial space can take five to six months nowadays.

However, what’s good about commercial spaces is that despite the higher vacancy rate these days, the typical tenants are businesses and corporations. When dealing with companies and large corporations, they would tend to have more financial leeway to afford higher or commercial rates of the lease. They also tend to be better tenants of the property because they maintain the property and respect its rules.

4. Triple Net Leases

The third difference is that when selling commercial real estate to potential investors is  value of triple net leases that many commercial leases include. Under a triple net lease, the tenant directly handles and pays for all property expenses. These include real estate taxes, building insurance, and maintenance expenses. These payments are on top of paying for the rental fees. In these situations, the property owner’s only concern would be mortgages payments on the property, if there are any. 

While triple net leases favor the landlord, some tenants (companies or businesses) may prefer them because they’ll have more control over maintaining the building. Not to mention that triple net leases also bring more transparency than other lease types.

5. Longer Term Lease

Commercial property leases tend to be longer term as compared to residential property leasing. Home rentals typically have a term between six to 12 months. By contrast, it’s a common practice to lease commercial properties between five to 10 years.

This is an advantage and benefit that you can point out when selling commercial properties to real estate investors. Long-term leases would mean they don’t have frequent turnover costs. They don’t have to make those repainting and repair works too frequently each time a tenant leaves and a new one comes in. It also means lower vacancy rates, which means that there wouldn’t be too many months that their property isn’t earning money for them.

An added advantage and benefit of longer-term leases is that it goes into the cash flow performance of the property. Having long-term leases means there’s money coming in more regularly from month to month. 

Take note that the fair market value of commercial properties doesn’t depend on the next-door neighbor or adjacent property pricing followed in residential properties. The value of commercial real estate is determined by the amount of money that it generates. This is discussed next.

6. How Property Values Increase

The fifth difference that you can point out when selling commercial real estate is that the value of commercial properties isn’t primarily influenced by comparable neighboring properties. The fair market value of commercial real estate is primarily determined by its revenue generation. 

The cash flow earnings of commercial property have a direct impact and tend to increase the fair market value of the property. If a commercial property is leased out to a high income-generating business, then the property will increase in value much faster than a home.

By contrast, the fair market value of a home is largely dependent on the selling price of the neighboring home that was most recently sold in the vicinity. This gives the commercial real estate investor a more active role in increasing the value of the property by choosing a tenant with higher cash flow and returns, rather than just waiting for how much the neighbor’s property would be sold.

Selling Money Makers

In selling commercial real estate, you’re really selling to the prospective investor is a future flow of income, hopefully a potential money maker. More likely than not, it’s also the primary reason why they are looking into buying such property. So, paint a clear picture about income flow in the past and how much more money it can make in the future. In short, show them the money.

If you are interested in either buying or selling commercial real estate, we can help. Contact us to find out more.

5 Important Considerations When Purchasing Office Space

considering purchasing office spacePurchasing office space is a big step for any company. You need to consider many things like floor space, price, on-site facilities, parking, and ambience before you spend a considerable amount of money on work premises for you and your employees. 

Of course, you can’t just buy the first office you visit. Walk around a few of the best and try to compare each one before you make your final decision. When checking out office spaces, keep these points in mind:

1. Check The Location 

The first thing you should consider is the location of your office space. You must find a place accessible enough for you and all the employees who will occupy the office.  

Is it close to public transportation and is there parking available? Is the office space in a good neighborhood or business district? Are there any restaurants or banks near your office? By answering these questions before you settle into an office, you can pick which one would be at the most effective location.  

2. Utilities Should Be Working Well 

Before you settle into an office space, first check if the electricity, water, and internet lines work properly and meet your needs.

If you’re not very familiar with these details, it’s best to bring an inspector with you. This way, you can determine if all the lines and connections are properly installed in the office.  

The electrical lines should conform to safety standards, and the main water line shouldn’t have any leaks or damages. Likewise, the internet service in the area should also be working correctly. If anything is not up to par, you should talk to the selling representative about repairs or search for other offices without any utility issues.   

3. Space And Ventilation  

Aside from the main utilities and location, you should also consider how much space is in the office, its layout, and the ventilation inside.  

Is the air-conditioning or heating system centralized, or can you regulate it per room? Does the office feel stuffy when crowded? Asking yourself these questions will help you chose the best commercial space for your new office.

Also, estimate how many people can occupy the office. For example, if you’re planning to move a company with 20-30 employees to the office, make sure there’s enough room for everyone to set up their desks, as well as essentials like filing cabinets, printers, and photocopy machines.  Hiring a space planner for this is both affordable and recommended.

4. Price For Value 

Before you purchase an office space, evaluate whether the money you’ll be paying is worth it. 

Try to factor in the costs you’ll pay for your monthly bills and the insurance for the place. Also, do s lease vs buy analysis to make sure you are making the right decision. Do all the aspects of the space justify its price? Can you still negotiate the selling price of the office?  

Once you’ve calculated all the expenses, you can determine whether the office you’re eyeing is worth its price.  

5. Do You See Yourself Building Your Company In That Space? 

Of course, the most crucial factor you should consider before purchasing an office is if you can see yourself and your company staying there for a long time. You are investing a significant amount of money in an office space, so it’s best to get your money’s worth.  

Consider if the office space is a positive work environment that will help you grow your company.  

Does it fit with your company’s ethos and values, and does it feel comfortable enough to work there daily?  

The office you’ll work will play a part in how well your company will function. It will also influence how efficient your employees’ work will be. So, think about how you’ll thrive in the office you’ll purchase. 

Final Thoughts  

Of course, we recommend you use a buyer’s broker when purchasing office space to make sure all of these and many other considerations are evaluated correctly. Purchasing office space for your business is a big decision and one that requires careful analysis. These are only a few considerations listed here that you should delve into. Once you’ve evaluated all the aspects of the potential office spaces you’ve checked out, you can decide which one is the best option.  

Certified OfficeFinder SpecialistContact us if you would like assistance finding the perfect office space to purchase. Our local reps are not only experts in their market, but also great guides to make sure you avoid any costly mistakes.

Buying, Renting, or Leasing Office Space?

deciding to buy, rent, or lease office space?Setting up an office is quite a task. From deciding the location to furnishing the office, it is time-consuming and requires a lot of effort. In addition to this, moving your office to a new area is labor-intensive.

This task is best left to the experts. If you are moving to a new office, consider this office moving checklist pdf to prepare you for the move.

When setting up an office, you have the option to buy, rent, or lease office space. If you are considering these options, it is always best to get a professional on your team to make sure you avoid any costly mistakes. Each of these choices has advantages as well as disadvantages.

Buying Office Space

Buying a property requires capital. Most small to medium sized businesses lack the resources to purchase office space or they choose to use their capital to grow thier businesses. However, for larger companies and corporations, buying an office space is an investment many choose to make.

Pros

  • Mortgage payments that will not increase.
  • Mortgage payments add to equity.
  • Appreciation over the long term.
  • You can rent it out excess office space and benefit from an additional source of income.

Cons

  • Buying requires a large amount of capital investment.
  • Opportunity cost of that capital investment.
  • Difficult to scale up in case of an expanding business.
  • You are responsible for repairs and maintenance, taxes and insurance.

Renting Office Space

In renting office space, it is usually a shorter-term period. You have the option to rent the space on a month-to-month basis or for a year or two. As with any contract for space, make sure to review the agreement thoroughly.

Pros

  • Allows for more flexibility in length of term.
  • Businesses have the option to relocate according to their needs.
  • Renting does not require a large investment.
  • The money is not tied up in the real estate and can be invested in the business in another way.

Cons

  • Monthly payments will increase over time with renewals.
  • Landlord may choose not to renew forcing you to move.

Leasing Office Space

Leasing office space is for a longer term period. Usually 2 – 10 years.

According to Statista.com, tech companies prefer leasing instead of buying a commercial property. Despite COVID-19 hampering business growth, tech companies were able to lease about 1.2 million square feet in the United States alone.

Pros

  • Monthly rental payments will be consistant for a longer period than renting office space.
  • Less capital is needed to lease office space than if you were to buy it.
  • The landlord is typically responsible for repair and maintenance of your office.
  • Leasing a property offers tax deductions.
  • At the end of the leasing period, you have the option to leave or renew the contract. So it offers some growth flexibility.

Cons

  • If you renew a lease, the terms of the contract may change, and rent may increase.
  • You have to comply with the requirements of the landlord.

Conclusion

Deciding on buying, renting, or leasing a property, is a big decision. A company’s business goals and growth prospects should be cinsidereed in making a suitable choice. In addition to this, the location of the office, the terms of a contract, the duration of renting/leasing, requirements of your employee, facilities, and other factors must be considered. Hence, you should take your time in deciding.

it is always best to get a commercial real estate professional on your team when making the buy, rent, or lease office space decsion to make sure you avoid any costly mistakes. This is the type of work they do day in and day out. They know what they are doing and represent you. The biggest mistake you can make is not having a professional on your team! Find one here.

 

Investing In Your Office Space or Multifamily?

real estate investmentReal estate investing can be an incredible opportunity for any savvy investor who wants to stay away from the volatile stock market. Here is a quick overview of what to consider.

Commercial real estate generally refers to office, industrial, and retail, while multifamily and single-family units come under residential.

Real estate offers tremendous possible benefits for a smart investor, including income flow, tax benefits and long term appreciation.

But before getting into either office space or multifamily, you need to do your due diligence. Unless you are an expert or exceptionally experienced at this, make sure to have a buyer’s broker, aka tenant rep, on yoru side and go to real estate investment professionals like Gray Capital LLC.

Multifamily

There are generally two types of residential buildings that you can purchase: a single-family and multifamily. The former means a single unit that can be rented out to a single tenant. On the other hand, multifamily properties can be anything from a duplex with two units to an apartment complex with tens or hundreds of units.

You may already know that single-family homes can be as low as $30,000 for an investor in some lower cost markets, but multifamily can be hundreds of thousands or millions of dollars. While the price tag might be higher on multifamily, getting loans for them is much easier. They are generally based upon the income flow of the property, rather than soley on the financial condition of the borrower.

If you aren’t the type to manage the rental properties yourself, then you will need to hire property management services. But if you have single units, hiring external services may reduce your monthly income significantly. Fortunately, multifamily allows you to easily employ property management services without worrying too much about the cost.

Office Space

Diversifying a portfolio can be instrumental for every investor, which is why an opportunity with a higher income potential makes good sense.

An office space can be as small as a loft or as big as a skyscraper. The sky might literally be the limit on this one. Since these are workplaces, any company that rents from you will stay for at least a few years because they need to establish a location for their consumers or clients. In other words, office spaces offer long term income or, if you occuy the space, long term rental relief.

There are obviously two options here as well. You can either go for a single office space that can be occupied by your company or rented out to a single tenant, or go with a building with multiple units in whch youcan occupy a portion. Having more units can reduce the risks because your income is diversified. One vacancy will ususally not have a significant long term effect.

While office spaces are generally more expensive than multifamily or single-family units, you do get more freedom. As the owner, you will have more responsibilities to your tenants in residential units, such as maintenance and repairs. But with office space, the maintenance is usually easier.

To find out if buying office space to house your business is right for you, check out our lease vs Buy information with the details to consider before moving forward.

Of course this is just a brief overview of the alternatives and there are many more investment options in real estate. Find out more at Investopedia.

Mortgage Options When Buying an Office Building

Perfect office spaceBuying an office building can provide a lot of opportunities. It adds to the business assets. Provides a permanent place for your business and it can provide overflow space to lease which can help with mortgage payments. Generally to qualify for a mortgage you must own at least 51% of the property. If you are trying to decide whether to continue leasing or buying an office building for your company, checkout our lease vs buy considerations.

Types of Mortgages

Traditional

    This is usually offered by banks in order for you to purchase properties. It is more comprehensive than the other loans with no maximum limits and fit for the long-term. The basic requirement is that it must be owner-occupied and the property value meet the bank’s loan to value requirement. A good credit rating, not lower than 700, is needed and your business must have a good performance for the last 2 years of its operations. In other words, it may be difficult to qualify in this option.

Another option to help with financing a business property loan may be to take out a mortgage on your home. You might want to check out the best of 2019 to find the best lender for you.

SBA 7(a)

Short for Small Businesses Administrations, this type of SBA can be used by business owners to buy different properties assuming the property is owner-occupied. As much as $5 million can be borrowed under this option. This can also be amortized for 25 years with fixed interest rates. Therefore the monthly payment will be fixed until the entire loan is paid in full. To qualify, the property must be owned at least 51%, with a credit score of at least 680 and the business has been existing and performing well in the last 2 years.

SBA 504 Loan

    This type of loan is also good for the long-term because there are no maximum limits. More so, it is comprised of 2 loans coming from banks, which will provide 50% of the total amount and from the Certified Development Company (CDC) to provide 40%. However, the remaining 10% will be provided by you. For example, if you are borrowing $10 million, 5 million comes from the bank, 4 million from CDC and 1 million from you. Like the other options, the property must be owner-occupied at least 51%, with a credit score of 680, and it should be an established business with at least 3 years of operations.

Conduit Loans

    This one is different from other loans as the mortgages are pooled together and eventually will be sold to a secondary market. As expected, the behavior of this loan will also be different. The lowest possible loans amount to $1 million up to $3 million with 10 – 30 years amortization. Likewise, terms of payment are fixed, together with the interest, but it is much lower compared to a traditional mortgage option.

Commercial Bridge Loans

For short-term purposes, commercial bridge loans may be a suitable one until further long-term funding is available. It is supposed to bridge the gap when there is no long-term financing yet, but you need to secure a property. Companies use this in minor projects such as renovations, repairs, and other fixtures. One of the advantages is that you can easily qualify here. You just need to show that you have been successful in the last 3 projects you were involved in, and a credit rating of 700. The amount that you can loan is just equivalent to your net worth. Furthermore, it is also easy to pay since it requires a low down payment.

Commercial Hard Money Loans

    This is similar to commercial bridge loans, however, hard money loans are offered by private companies. It is also for short-term uses such as renovations, small projects, and others that may be closed upon the completion of the project. The qualifications are not that strict compared to traditional loans.You just have to have a credit rating of 600, successful in the last 3 projects, and you should have a proof of downpayment. However, since it is short-term, the interests are higher.

Soft Loans

    This type of loan is like the hard money loans that are intended for short-term uses. The difference is that it bases the approval, not on the down payment, but rather on the strength of the application which is the credit rating. When approved, you may enjoy lower down payment and interest rates, and longer term of payment.

As you can see, when buying an office building there are quite a few options on how to finance it.  You can find out more Information here.

If you’d like assitance in finding and negotiating for an office building to purchase, we have a team of top notch brokers who can help. Contact us today!

6 Reasons Renting Medical Office Space May be Better Than Buying

Medical office spaceFor many reasons, renting medical office space for your practice may be more practical and profitable than purchasing a building to house your practice. Both processes can be time-consuming and stressful, here are 6 reasons you may want to rent vs. buy medical office space for your practice.

  1. Lower Costs – If you can find an existing space with the layout you need for a medical practice, then less capital will be needed to convert the space to fit your needs.
  2. Landlord support – Renting medical office space often means that the landlord will provide some financial support to convert the property, particularly if your lease is long-term and they know that income will be generated for years to come. Maintenance and repairs are often negotiable as well.
  3. Speed-to-market – Renting vs. buying means that you will save time along with money because there will most likely be shorter construction times for upgrades than a full remodel.
  4. Cash flow – Renting eliminates the large cash expenditure required to purchase a building and frees capital to be used in other areas of your practice.You may be able to generate more income from your practice by investing the down payment you would have had to pay. Depending on your practice and the opportunities you have to invest, the return on investment may be higher than what you could achieve investing in purchasing you own medical office space.
  5. Flexibility – Should your practice expand and outgrow your current building, it is easier to move on to larger offices and visa versa.
  6. Time – as a medical practitioner, your workload is often full. Adding owner and property manager to your tasks can impact the time you devote to your practice.

Once you have made the decision to lease, you need an experienced professional to help you pick a prime location for your practice. Please contact us for more information on  medical office space.

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Buy or Rent Office Space? What should you do?

Buy or rent office space DecsionWhether a company is an established business or a fledgling start-up, saving money is always a good way to impact the bottom line.

So the question of whether to buy or rent office space eventually comes up in evaluating your options. Since most businesses start off renting, the question is usually whether or not to stop renting office space and purchase either their existing office or moving to a new facility.

There are many factors that go into the decision of whether to buy or rent office space. Here are a few of the most important factors a company should factor into their decision.

  1. Cash Outlay – A mortgage will require a down payment of at least 10%, on an SBA loan, but more often will cost up to 25% of the purchase price. The cost outlay of renting is usually just the first and last month’s rent.
  2. Opportunity Cost – Since a down payment is a considerable amount of cash, a company will have to consider the cost of missing out on the resources being allocated elsewhere. What sort of return could you expect on the money invested in real estate vs. your potential return from the real estate investment?
  3. Fixed vs. Variable Cost – When a company purchases a building, the costs are pretty much fixed, especially if that company has a fixed-rate mortgage. This is not the same if you lease, since prices depend on the market.
  4. Growth Considerations – Are you an established company or are you in a growth phase? Are you looking to add more equipment, staff, etc.? Renting office space would offer more flexibility for the future. If you are more established, then this need is obviously less important.
  5. Property Management – Managing a property (i.e. repairs, lawn care, etc.) costs money. If you don’t do it yourself, you will have to contract it out to someone else, which will be added to operating costs. Many companies curtail this cost by buying more space than needed and then renting it out to other businesses.
  6. Appreciation – One of the main advantages of owning office space is that the building’s value will appreciate over time. On the flip side, renting is essentially an expense with no return from an investment standpoint.
  7. Tax Factors – Lease payments are fully deductible, while expense on an office needs be written off over many years. However, if you own an office then you can deduct all interest payments and take depreciation on capital improvements.

The Next Step

Most of the rent or buy office space factors can be calculated by the business owner, but it is a good idea to consult a commercial real estate professional to get a better idea of your options.  Still, the final decision rests with the business owner, so it is important to run a cost-benefit analysis.

If you are looking to buy or rent office space, contact us on our website to see how we can help you meet your needs.

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5 Keys to Obtaining a SBA Guaranteed Loan to Finance Commercial Real Estate

SBA loans for financing commerial real estateSmall business administration (SBA) guaranteed loans are an excellent resource for small businesses to obtain favorable loans for both leasing and to finance commercial real estate for owner occupants. What many people are unfamiliar with related to the SBA loan programs is that there are two programs in which small businesses may be eligible to participate for the finance of commercial real estate. Before considering which program to consider in obtaining financing, the first key in obtaining a SBA guaranteed loan is understanding the general eligibility requirements for the loan programs available.

  1. Know the SBA guaranteed loan eligibility requirements:
    1. Your business must be a for profit business. Nonprofits are not eligible
    2. Your business must be considered a small business by the SBA. In order to do this you must have a tangible net worth of less than $15 million and have a net average income for each of the previous two years of less than $5 million
    3. You must be doing business in the US
    4. You should show you will be creating or maintaining jobs
    5. You must have a reasonable amount of equity in your business.
    6. You must demonstrate a need for the loan proceeds and have a sound business purpose for the funds.
    7. You must demonstrate that you are unable to get a similar loan elsewhere.
    8. Finally, you cannot be delinquent on any existing debt obligations to the US government
  2. Understand the loan programs available:
    1. The SBA 504 program is designed financing fixed assets for healthy, growing businesses. This includes 51% plus owner occupied real estate or machinery and equipment. The program allows for a typical down payment of only 10% on long-term loans. Loan amounts can range from between $200,000 up to $20 million or more.
    2. The SBA 7(a) can also be used to purchase commercial real estate, assist in the acquisition, operation or expansion of existing business. They can also be to purchase equipment, machinery, furniture, fixtures, supplies, materials, as working capital or occasionally to refinance existing business debt. It can also use be used for tenant improvements on leased properties. The maximum loan amount is $5 million. In 2012 the average loan was $337,000.
  3. Finding a lender: Work with a SBA Preferred Lender. These are lenders have the most experience in working with the SBA and in most cases have the ability to make SBA guaranteed loans on their own, based upon their own review, without the SBA reviewing the application. All they need to do is get an assignment of loan number from the SBA. You can find a list of preferred lenders online.
  4. Qualifying for a loan:  Many borrowers who would technically not qualify for a conventional loan, which may require 20-25% down to purchase Commercial Real Estate, may very well may qualify for a SBA 7(a) or 504 loan with only 10% down, if the down payment is an issue for the borrower in obtaining a conventional loan. The lenders use their same lending criteria with the SBA guaranteed loans as they do with their own loans. So, there are still hoops to jump through and you need to show that you can pay the loan back. It is actually the lender making the loan, not the SBA. The guarantee by the SBA allows for better loan terms and lower risk to the lenders.
  5. Prepayment penalties: SBA guaranteed loans have a declining 10 year prepayment penalty built-in to the 504 program guaranteed loans. Currently it is 2.52% during the first year and then declines by 10% each year after that. The 7(a) has a 3 year declining prepayment penalty: 5 % year 1, 3% year 2 and 1% year 3 on loans over 15 years.

These are the basic keys to obtaining a SBA guaranteed loan to finance commercial real estate. There are many more details that have to dealt with, another good reason to work with a preferred lender. While much of this may seem complicated to many of us, most of the preferred lenders have loan officers who only work on SBA guaranteed loans and can simplify the process significantly for applicants.

Find out more at SBA Experts

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3 Reasons to Lease Medical Office Space vs. Buy

Buy or Lease Medical Office Space DecsionMany practices own their office space, but it’s surprisingly common for them to choose rental or leasing options instead. Here are a few of the top reasons to look for to lease medical office space instead of buying it outright:

  1. There’s no need for a substantial down payment. Even for established practices, the need for a big down payment can be a deal-killer. This is especially true in cities, where office space is at a premium. By renting, you can get into areas that would otherwise be unaffordable.
  2. Medical office buildings have the basic infrastructure you need. When you buy a building, you will usually end up having to make substantial upgrades and customizations before it’s ready for you to move your practice to the new location. The same is true if you lease generic office space. Medical buildings, on the other hand, usually have things like upgraded electrical systems already in place.
  3. Renting allows access to office space in areas that are already fully built out. In large cities, it can be impossible to find a location to buy. This is especially true if you want to be downtown or in another busy area. By renting, you can obtain space in a high-rise or dedicated medical center that simply wouldn’t be available any other way.

These are just three of the reasons that choosing to lease medical office space can be the perfect solution for your practice. Patient preference is another big factor to keep in mind. Many people prefer to go to doctors who are in medical centers because it is convenient to do so. Someone who needs to see more than one type of doctor will be glad to have them all in one place. Medical centers also give a solid impression that is hard to match with a standalone building.

To find the latest openings for medical office space, just contact us. We’ll be glad to help you find the properties that best meet your needs.

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Buy vs. Lease Medical Office Space?

Buy or lease medical office space DecsionDeciding whether to purchase or lease medical office space is a big decision. To help you, below are a few of the advantages offered by both purchasing or leasing medical office space.

Leasing Advantages

  • A lease requires less capital investment than buying. This can be a big advantage to new practices trying to get established.
  • The terms of a lease can offer flexibility that buying cannot. For example if you are unsure about an area, a lease can allow you to try out your practice at that location before investing in buying medical office space.
  • If you lease medical office space, it can help get you get a more attractive office or location. If you think a great location is out of your price range, a lease might make you reconsider this assumption.
  • You can lock in your rate. After all the whole point of a lease is to agree to pay a set fee to use a space for the duration of the lease terms. So if you find a hot up and coming location, you can get a good rate before rents rise any further.

Purchasing Advantages

  • You have more long term control over office space costs. If you buy in a down market or before an area becomes popular, you can find yourself with an office space that is worth more than you paid.
  • There are tax incentives for buying. Although they are not as good as they used to be, they can still be significant enough to matter when it comes to the costs at your practice.
  • There are situations where you might want an office space in a specific location but there are no spaces available for rent. In this case purchase might be the only option other than finding a different location.
  • If your practice grows, it can be easier to make renovations or changes if you own your space. If you lease a space than any changes that are made must be approved by the owner. Also when you own your space you are more likely to make those same renovations because you are investing in something that is truly yours instead of someone else’s property.

Whether you want to buy lease medical office space, OfficeFinder has helped many medical practices find the office space that is ideal for them, Contact us and let us get started finding the perfect office for you.

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