Buying An Office Building or Office Condo Tips & FAQ
With any investment, the reality is that risks abound and potential rewards abound. The question must be asked, is it better to lease or buy an office building or office condo? The answer depends on the opportunity.
Here's how we can help:
- We find every space that fits your requirements by searching both Costar & FMLS.
- We provide you with a comprehensive color report with pictures of the spaces that meet your specific requirements.
- We schedule tours & show you every space that you want to see.
- We help you narrow down the best spaces through comprehensive analysis. One of the key factors we analyze for each space is the current and historic CAP Rate (income of the space divided by the total value of the property). Another key factor we analyze for each space is the usable vs. the rentable square feet.
- Our commercial construction experts can help you determine how much it will cost to bring each space up to your requirements.
- Once you find the right office building or office condo, we can introduce you to experts you'll need including tax experts, attorneys, accountants, appraisers & engineers.
- After purchasing an office building or office condo our construction project managers can help you manage any construction or renovation that the space needs.
Benefits to Buying Office Space
- Increased control over the cost of the real estate portion of overhead. A lease typically increases every year. If you buy, the annual increase is no longer a factor.
- Investment benefits such as depreciation and asset appreciation.
Risks of Buying An Office Building or Office Condo
But there's a catch:
When buying an office building or office condo, it's critical to understand all the risks. To be fully knowledgeable about all the risks, do extensive research on the building and the transaction in general. The most common risks include:
- The Location may not be as hot as you first thought. Trends in location preference can change.
- Reduced liquidity in the event you want to sell the office building and there are no buyers.
- If you are leasing out the office building, tenants may stop paying. At some point the space will need renovated & systems repaired or replaced which can be costly. Due to these issues, cash flow can become a problem if you have not planned for them.
- You might outgrow the office building or office condo. Alternatively, you might find out you don’t need as much space as first thought.
It is critical to utilize the right team when buying an office building or office condo in Atlanta. OfficeSpaceAtlanta.com can help you analyze if it is the right time to buy or sell. We can help you to analyze the best locations to consider. Lastly, we can help you negotiate and close the deal. Contact us today to get started.