On behalf of Michael Brooks of Law Offices of Michael A. Brooks posted in commercial real estate acquisitions & dispositions on Thursday, May 24, 2018.
Owning your own piece of commercial real estate sounds like a great idea — but is it really worth the trouble?
According to the experts, it’s actually a great time to make that kind of investment if you’re already in business for yourself.
Why? There are a host of reasons that a commercial real estate purchase could be right for you:
You already know that it can be difficult to negotiate a good commercial lease that accounts for all the variables that can happen in business.
Owning your building negates that problem because you control your rent. Even better, it allows you to control the external factors that can affect your business — especially if you operate out of a multi-unit plaza or building. You can control the mix of tenants and the type of overall clientele coming in.
The tax benefits
It pays to get some advice when you decide how to organize your business holdings. Some companies choose to create a separate business entity to own and administer their buildings. The parent company then pays monthly rent back to the holding company — which works to secure some important tax benefits for both the owner and the business.
A growing asset
Commercial property usually goes up in value over time — which means that you have an asset that will appreciate in value. That’s always a wise business decision.
One of the hardest parts of being a business owner is deciding what to do with the company’s money. You need to save some, but you also want to put it back into the business. Property acquisition gives you the opportunity to do both that the same time. Because the property can be used to secure loans in the future, it’s almost as good as money in the bank.
Only you can decide if buying commercial property is in your company’s best interest — but it’s definitely something that you should assess while interest rates are still favorable.
Source: business.com, “5 Reasons to Purchase Commercial Property in 2018,” Chris Hurn, accessed May 24, 2018
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