In the initial stages, most start-up entrepreneurs run their companies from their homes. They soon realize the need to have an office when their commercial operations start to expand. It serves as a place where they can meet potential customers to negotiate and finalize business contracts. Moreover, an office provides an environment where their employees can discharge their responsibilities without any disturbance. However, most of these entrepreneurs are generally reluctant to buy commercial office properties outright. The money they need to invest in acquiring a suitable premise might be beyond their budget. Fortunately, they can make the correct decision through proper planning and careful research.
Mack Prioleau – What should entrepreneurs consider when buying commercial offices?
Mack Prioleau is a resident of Dallas, Texas, and works as an Associate in a popular commercial real estate company. He is an Economics graduate from Vanderbilt University with a Minor in Corporate Strategy. His area of expertise is in the acquisition and sale of commercial buildings in the industrial sector. He has many years of valuable experience in this field.
He explains entrepreneurs have to assess their specific business needs before venturing to buy commercial office properties. They first need to determine exactly how much office space their companies require. This depends on the number of employees currently working for them, the level of operations, and future expansion plans. When buying commercial office properties, start-up entrepreneurs should consider the following factors:
- They should determine how much money they are willing to invest in the properties and maintain the budget allocation,
- The location of office buildings should be accessible to major business centers and commercial hubs,
- The buildings should have good transport connectivity via road, rail, and air to ensure smooth movement of products,
- The physical condition of the commercial buildings should not be precarious and in need of urgent renovations,
- The price the properties’ owners demand should be reasonable and commensurate to the prevailing market value of similar buildings,
- The buildings’ title deeds and other relevant documents should be in the name of the owner before the purchase, and
- The office buildings should have all the necessary amenities to run their companies efficiently.
Advantages of buying commercial office buildings
The advantages of buying commercial office properties outright for start-up entrepreneurs are as follows:
- They can renovate the office properties according to their needs to increase their intrinsic value,
- Almost all of them can claim tax deductions on loan repayments they make to purchase the properties,
- They can let out additional space in their office buildings to commercial tenants to boost their cash flow, and
- Their companies’ overall value increases if the price of the land on which the office buildings are located appreciates.
Mack Prioleau sums by saying buying commercial office properties outright is an important decision all start-up entrepreneurs need to take. They cannot afford to act in haste and make all the wrong choices. It is prudent for them to conduct thorough market research and exercise due diligence before finally making up their minds. If the need arises, they should consider hiring a reliable real estate specialist. This expert should have the necessary experience and expertise to conduct successful commercial property purchase deals to help them make the right choice.