Buying my building or Lease?
In the recent present we have seen a rise in new businesses that have started up. Atlanta commercial real estate market has shown a rise in new business trying to lease or sublease Office Space. This is probably due to the current pandemic and people losing their jobs. Also it could be the fact that people are just bored at home and looking for other streams of income. The Office Advisors are here to help with any of your daily commercial real estate needs no matter how New or Old your existing businesses. One of the main questions that comes up to us all the time is whether I should purchase or lease my commercial office space.404-594-3028
Now, no matter which option you choose whether you are going to lease or purchase your next existing Atlanta Commercial Real Estate there are some things you need to consider. We at The Office Advisors are able to assist you at no matter which route you go. However you should be aware that each one does have its benefit and each one does have its downfall. No matter what you choose to do with your space make sure it is an informed and thought out decision.
Do you have enough upfront to buy?
Firstly you need to consider if you even have the money to purchase a commercial building. In the Atlanta commercial real estate market where you will typically see that you will need a large down payment. It’s down payment can be anywhere from 10 to 80% depending on your lender and your current financial status. This is a large amount upfront and can be hundreds or tens of thousands of dollars. Whenever you were starting up a new business this could be a detrimental loss to your cash Reserves.
Conversely without purchasing a building leasing a building is generally a lot less money up front. A down payment is typically much larger than a security deposit required by the landlord. We say required, but nothing is ever required you can negotiate your way through any of these items in a letter of intent. Would you lie with your Atlanta Commercial Real Estate lease to make sure you have proper representation so you are not leaving money on the table. Our Brokers at the office of visors will make sure that you are not spending more than you have to on your lease space.
Equity to Help expand your Business
Likewise when you were purchasing a building and you have to put the large payment upfront it can be beneficial in the long run. When you are owning a building typically you will be building equity in that Atlanta Commercial Real Estate asset. What are the great things about building equity in your Atlanta commercial real estate property is that you are able to take that Equity out down the line. That I could eat and then be used for your business expansion and growth opportunities. When leasing a building you will not have this opportunity. The money that you might need for expansion will have to be sourced in other areas.
Create income through Leasing Unused Space
Above all else cash flow is my favorite benefit to owning your own Atlanta commercial real estate property. When you own a building you can lease out portions of it that you may not have needed for your current business situation. You can either have a property management company or be the landlord yourself whatever works best for you. Moreover the beautiful thing about this is that you have now created cash flowing assets. When you are collecting rent you are now increasing the value of your building. This in turn allows for a larger some of equity that you might be able to get out of the building when needed.Of course you tonight peace out your own you spaced for a profit in most Atlanta Commercial Real Estate leases. The landlord does not want you creating a profit off of his product.
However whenever you buy an Atlanta Commercial Real Estate asset for your business use you might need to do some construction. This is what we refer to in the industry as a build-out face. When you own the building you are on the hook for 100% of the Bill of your build out. The antithesis to this is the fact that when you lease a space in the Atlanta commercial real estate market TI is given typically. Power Brokers most of the time see that a landlord is willing to give some sort of tenant Improvement allowance in order for a build-out to occur that fits the needs of the business. As mentioned earlier when owning your space you are on the hook for all of it.
Did Someone say Referral?
Furthermore you would like to be able to be around business is that or in like kind with yours. If you are speaking in general office space terms. The most commonly used office space in Atlanta is large Office Buildings. And these buildings there are a multitude of different Industries and services that might be able to refer to each other’s business. Typically what we see when you are purchasing a Atlanta Commercial Real Estate asset for your business is that it is not near as large as these massive Office Buildings. So what are the benefits to leasing is that you might have more referral opportunities with other tenants in the building.
Weigh your Options before Deciding
Lastly and by all means these are not all of the pros and cons of owning an Atlanta Commercial Real Estate building for your business. Flexibility to grab is a major concern when you are expanding your business. But individuals might think that is easier to expand your business when you are owning your Atlanta Commercial Real Estate asset. This however is not necessarily the case. You as a business are limited by the amount of square footage you already own or whatever the building contains. Typically when leasing in a large office space you can negotiate the fact of right of refusal or expansion rights in the same building. This makes it easier for you to expand and you are not limited by just the square footage you initially rent when growing your company.
Now if you have any further concerns or questions on whether you should lease or purchase your first Atlanta Commercial Real Estate building for your business we are here. The Office Advisors are professional licensed brokers in the state of Georgia. We make sure that all of our clients try to do the mental exercises in order to make the most informed decision. So no matter what then you were going to run down for your business we are here to help. If you have any further questions you can always reach out to us and we will be happy to help.
The Office Advisors always make it a free consultation in the no obligation to work with us. You can reach out to us through several mediums. Some of the easiest ways is to visit our website at www.TheOfficeAdvisors.com. We have forms on two different pages that you can fill out your needs. One of our Brokers will reach out to you shortly. Importantly wanting to make sure that you are taking care of it all of your questions are answered before you go into an Atlanta commercial real estate transaction alone.404-594-3028
Are you a business owner or industry leader in the Atlanta area? Even if you are not then you might want to check out our YouTube channel. Vice President of commercial operation Reid Moore holds a weekly Mastermind meeting that is recorded. You can check out all of these Round Table discussions on our YouTube channel at The Office Advisors.
You better watch your needs and the Atlanta real estate market. We are here to help. The office advises parent brokerages Sellect Realty, a trusted name in the Marietta and metro area for years. No matter what type of real estate you’re looking for we are the brokerages for you.