The market for commercial condominiums has been steadily rising for the past decade.
The office condo market is filling a need for small businesses and professional service providers as the owners realize the benefits of owning their own office space. Tax benefits, mortgage payments that can be potentially lower than lease payments, as well as the real estate equity owned by the business all help the bottom line and many businesses are take the plunge into owning their own space.
Owning ones own place of business means the occupant can make the office into a signature space. By purchasing a “shell” – unfinished space – the buyer can customize the finish out, putting their own touches on the space and benefiting, in the end, from any improvements made.
A typical condo buyer is looking for between 2,000 and 3,000 square feet, the business is five to ten years old, and their employment numbers are generally stable. Much like a first time home buyer, the business owner buying a condo has realized the futility of paying rent year after year, and is looking to add assets to the financial sheet.
The limited space requirements shouldn’t be a show stopper for those businesses with the potential for expansion, however. One option open to this sort of business is to purchase a larger space and lease out extra offices to other businesses. When the time comes to expand, the space is readily available to the growing business.
