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Over the past couple of years, the office sales market has been booming. Office suites are uniquely positioned to meet the needs of small to mid-sized businesses, usually firms such as medical practices, dentists, lawyers, engineers, accountants, architects, real estate companies, mortgage brokers, insurance brokers, general contractors, and other service-oriented businesses with established practices. Business owners and partners in these organizations are receptive to the benefits that owning versus leasing office space provides. They welcome the opportunity to buy a property without the expense of purchasing land and the aggravation of supervising the construction of a building. Owning small office suites is also an attractive option due to the under-supply of small buildings in the 1,000- to 5,000-square-foot range available for purchase. There is plenty of demand for this type of office product. Historically low interest rates have sparked buyer interest and drawn attention to the perks of owning vs. leasing. Ownership has the potential to offer big financial benefits over the long term. Not only do buyers deduct interest on mortgage payments, but they also acquire an asset that ideally will appreciate in value over time. But, interest rates are only a part of the lure of buying vs leasing office space. Buyers are enticed by the package of benefits ownership provides, such as tax advantages, control of the property and the ability to create stable real estate payments rather than being subject to lease terminations and rent escalations. |
