As the commercial real estate industry continues to grow in The Woodlands, South Montgomery and North Harris Counties, it’s a great time to own a business, given the variety of commercial real estate properties available for lease and sale. However, it can also be frustrating for entrepreneurs who may not have experience in the pros and cons of leasing versus buying. And even for those business owners who do realize the advantages of Owner-Occupied Commercial Real Estate (OOCRE), they may lack the rental market knowledge or research time needed to decide if it’s the right choice for them.
Is OOCRE the Right Choice?
To help you determine if OOCRE is the right choice for your business, ask yourself the following questions:
- Do our short-term goals include rapid expansion?
- Is my current commercial property lease coming up for renewal within the next three years?
- Is it important for our company to be in control of future occupancy costs, expansion and parking rights?
- As an investment, could the real estate return on capital enhance or exceed your business return on capital?
Easier to Finance
Because there is less risk perceived in OOCRE, commercial lenders are generally more willing to approve loans. There are several reasons for this, but the main reason is that the potential owner will be the primary occupant of the building. This provides long-term stability to the investment, which is a very comforting thought for lenders. When the majority of a building is leased to a qualified, reputable and proven entity, commercial real estate financing will be readily available.
Another reason to consider OOCRE is that most businesses already have a commercial property banking history and business relationship that can expedite the process. In addition to being quicker, OOCRE in this scenario offers additional advantages such as more favorable interest rates, lower mortgage payments, tax benefits, a lower down payment and longer-term fixed interest rates.
If you are considering the purchase of a building for commercial use and would like to know more about Owner-Occupied Commercial Real Estate, please contact our team of qualified professionals at The J. Beard Real Estate Company. Give us a call at 281.367.2220 or visit our website at www.jbeardcompany.com to view our current listings.