Some office buildings have strict business hours, preventing employees from staying late to finish their work. Owning your own building eliminates that problem. An example would be if an employee wanted to get work done late at night, but the high-rise building was closed after 8 p.m.
CONS OF OWNING COMMERCIAL PROPERTY
Upfront Costs
This is the first reason owners don’t consider this option. They aren’t in the right financial spot. The upfront cost here far outweighs the upfront costs of leasing. In fact, it can be from four to six times the amount. First, you have to get a loan, which would require you to put down anywhere from 10% to 40%. Other upfront costs include your due diligence fees on inspections and things like that and other closing costs. Then you will probably have improvement and renovation costs to prepare your space for your employees. This is the biggest negative to purchasing commercial property. It’s also why companies who can do this should jump at the opportunity.
Lack of Flexibility
Naturally, you have fewer options to move to downsize or upsize when you own your space compared to when you rent a space. Leases can be short; anywhere from three to ten years is standard. Loans can go anywhere from five to thirty years. Your finances could be tied up for that amount of time as well, limiting what you can spend for your company. Also, moving inside the building that your current landlord owns is a benefit of
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