As a business owner, owning your commercial property can come with many advantages if you’re in the financial position to invest and if it aligns with your personal and professional goals. While the common objective here is to eliminate paying rent and instead make payments towards a building that you own, there are other financial benefits of owning commercial property that can pay off in the long run.
Every business owner should have an exit plan – the strategy that allows you to retire from your business, whether it’s to keep the business going under new management, sell, or liquidate the business altogether. Owning commercial real estate property can be a part of this strategy. Even if you sell or liquidate the company, you own the building and can offer real estate services in the form of commercial leasing.
Keep in mind that real estate is a long-term investment, so this strategy works well for companies in it for the long haul and can see the facility appreciate in value. Years down the road, when the building is paid off, you can continue to generate rental income and hire the help of an industrial property management company to look after the facility and tenant needs while you vacation and enjoy retirement.
While you may be a long way to retirement, you can still generate rental income now by leasing out a part of your commercial building. This can lower your monthly mortgage expenses or help you pay the loan off quicker.
When you’re leasing commercial property, you’re subject to increased rental rates. For some businesses, the fluctuation can make or break their company. However, when you own your building, you’re able to build equity. Additionally, you have access to capital as you can borrow money against the property should you be faced with a situation where you suddenly need extra cash.
Although there are strong financial benefits to owning a commercial property, there are, of course many factors to consider. Whether you’re renting or owning, each comes with its advantages and disadvantages that you’ll need to weigh out and decide what makes sense for your situation right now.
When budgeting for expenses as an owner, you’ll need to factor in unexpected costs. While you have more freedom to customize your space as an owner, you don’t have to worry about major building maintenance and repairs as a tenant. As an owner, you have a higher level of potential liability than you would as a tenant. If your business needs some flexibility to move to a new location, commercial real estate ownership may not be right for you.
The above examples are just a few of the aspects of ownership you’ll need to consider. Take your time and seek the help of professional real estate services to help you come to the right decision.
The city of Calgary is a hub for innovation. Its oil and gas sector has made Alberta a leading force in Canada’s economic growth. In addition to its picturesque surroundings, Calgary is a desirable city with attractive business growth opportunities. Diverse commercial locations make it a choice destination for local and multinational organizations seeking to […]
Our team at CMS Real Estate would like to wish you a festive holiday season and a happy new year! We appreciate your support and loyalty this past year and we look forward to continuing to serve you in 2022! As a Calgary-operated business, one of our great joys is being able to serve Calgarian […]
According to Costar’s 2021 Year-End review for office spaces, “Overall vacancy rates are expected to decline, while rental rate growth, after a three-year run of declines, is expected to reverse course and begin to start registering growth. […] Moving forward, the City of Calgary has identified a 10-year, $1 billion plan for the downtown core, […]
Are you interested in investing in commercial real estate in Calgary? Curious about the benefits and advantages this type of venture can yield? Investing in a commercial property is a good idea as it can provide great investment returns. These properties are bought by people who have surplus capital and have the intention of renting […]
A commercial real estate broker is a representative of either the property owner or someone looking to buy or lease a property, their job is to facilitate a successful transaction for the party that they are representing. One of the most important roles of a real estate associate is to fulfill their fiduciary duties, which […]
Commercial and Industrial Real Estate in Calgary is one of the most stable forms of real estate. The market has been growing steadily for decades, and while things have slowed down due to the pandemic, the promise looms large going into 2022. For this reason, commercial real estate experts in Calgary are optimistic about the […]
© Copyright 2022 CMS Real Estate Ltd.