Commercial office space refers to an official work area dedicated to business and commerce. This may be as small as the size of an office for one worker or as large as a high-rise building with dozens of floors. Some business owners have also been investing in shared workspaces, where they provide coffee, free WiFi, and other perks, and then open their doors to businesspeople who would have otherwise worked from home or in a coffee shop. Some shared spaces even require memberships, bringing in a steady income for owners.
Purchasing Commercial Office Space
Purchasing commercial office space does require a significant amount of funds upfront. However, if you have the capital to invest, it is usually the best option. This is true whether you are a small business looking to open your doors to the public, a property management firm looking for your next big project, or an entrepreneur who wants to create shared space for other entrepreneurs.
Why Buy Commercial Office Space?
Here are just a few reasons buying is the best commercial office space investment opportunity for you and your business:
- Owning property provides full freedom and flexibility to redesign, renovate, and refurnish commercial real estate to suit your brand and your company’s needs.
- Mortgage payments for commercial office spaces are fixed, allowing companies to plan ahead with greater security, whereas companies who lease may face increases as the market fluctuates.
- Owning property also provides the opportunity to sell the property at a profit when the business has outgrown the space.
- Instead of selling, you may rent or lease the office space to another company, or several companies, and bring in monthly passive income for yourself and/or your business.
- Owning commercial real estate is a great way to start filing away money for retirement — perhaps, even early retirement.
- The government provides tax deductions associated with the cost of owning and/or operating commercial real estate.
- Purchasing commercial office space can cost as much as 86.6 percent less than leasing workspace.
How to Buy Commercial Office Space
Many would-be commercial real estate owners are often discouraged by the buying process. In truth, purchasing commercial real estate can be time-consuming and requires knowledge of the ins and outs of the industry. It is for this very reason that business owners and investors in this position should hire commercial real estate professionals with both the time and experience to advocate for their best interest.
The team at Royal Commercial Real Estate begins by assessing your needs and current position. We aim to find answers to questions, like the following:
- How big is your company?
- How fast is the company growing? Is it fast enough to outgrow the office space before your lease agreement ends?
- Do you have a move-in deadline or goal?
- Do you intend to use the office space for yourself, or rent it to others?
- If you intend to rent to others, what type of tenants do you wish to attract?
- What is your ideal location?
- Are you willing to put some work into the building, or do you prefer something “move-in ready?”
- What is your budget?
- Will you require financing to make the purchase?
Once we have gathered all the information we need, we then use our unmatched understanding of the local commercial real estate market to find the property that best suits your purposes.
Leasing Commercial Office Space
Despite the many benefits of purchasing real estate property, many business owners and commercial real estate investors find that leasing commercial office spaces better suits their purposes. Reasons for this could range from financial to personal and are especially affected by the needs and the current position of the business and its owner(s).
Why Lease Commercial Office Space?
Here are a few of those instances when leasing instead of purchasing commercial office space may be more beneficial to a business or investor:
- Since there is not usually a large upfront capital investment associated with leasing commercial office space, businesses may use that money to invest in other areas, such as marketing or employee benefits.
- If you outgrow the space, it’s easier to lease more space in the same building or to take the next big step and purchase another.
How to Lease Commercial Office Space
The process of leasing commercial real estate is a lot less complex than purchasing it. However, as with any legal or financial aspect of business, you should not proceed without professional advice. Our needs analysis of your business would cover many of the same associated with purchasing commercial office space. However, we would also need to know the following:
- Are there specific features your business absolutely needs in place before leasing, such as card-only access or specialized building features unique to the business?
- What customization options do you need to set up shop? Some commercial landlords do limit the changes a business can make to the space.
Whether you choose to purchase or lease commercial office space, this is a big step forward for you and your business. To ensure the process runs as smoothly as possible every step of the way, contact Royal Commercial Real Estate and take advantage of our expertise and years of experience.