With rising rents and operating expenses, small business owners are searching for ways to reduce costs and invest in their own bottom line. Investing in commercial real estate through office ownership, such as office condominiums, can be a savvy strategy. Historically low interest rates, favorable tax advantages and the unique characteristics of professional office condominiums have made them extremely popular with small businesses. This new category of office space offers many low cost options that were previously unavailable with traditional office buildings.
Professional office condos are commonly built out in sizes ranging from approximately 1,250 to 12,500 square-foot suites. This is a good size for a small business office. Business owners have the ability to customize their space to fit their needs and corporate image. Typical suites can feature private entrances, private restrooms, and kitchens with high end finishes selections such as granite, wood flooring, tile and decorator color schemes. Some businesses may purchase contiguous condos or entire buildings as an investment. This provides rental income and the room for future expansion as their business grows.
As with residential condos, professional office condos are managed by a community association. The hassles of the day-to-day management of common areas are handled by the association and expenses are shared by the condo owners. Each owner typically retains responsibility for interior maintenance in their own unit.
Business owners also enjoy the professional atmosphere of associating with other professionals. An office condo community is ideal for attorneys, physicians, medical related businesses, accountants, professional business consultants, non-profit organizations, real estate related business, financial services, insurance companies, and those who work from home or are seeking to establish a prestigious business office address.
With interest rates at historic lows, it is easier than ever to invest in small to moderate sized office space especially as an owner user. SBA lenders and commercial lenders alike have been aggressive with their lending requirements and are allowing the opportunity to include many fees into their loans and offer low down payments to those who qualify.
Property ownership provides opportunities to deduct mortgage interest, real estate taxes, depreciation, and property improvements. Owners also have the opportunity to build equity over time and reap further benefits while the property appreciates in value. A CPA can easily help evaluate the net value that property ownership brings to business tax situations.
Professional office condos are attractive, cost effective and convenient alternatives to traditional office leasing. The expert team at The J. Beard Real Estate Company provides professional services related to investing in commercial real estate. Tap into our insight, leadership and expertise by calling 281-367-2220 or visit our web site at www.jbeardcompany.com.
-Linda Crumley
The J. Beard Real Estate Company
