The interest rate roller coaster may finally drop this year. If you feel rates will decline soon, the time to begin taking action to buy office space is now. There is still abundant office space, with the U.S. vacancy rate hovering at 20 percent, motivating sellers to cut their losses and giving you more bargaining power.*

Here’s another reason to buy now. If you have contract value, you can use it as a down payment at the Credit Union. Our business consultants can walk you through all the advantages of owning.

Here are six benefits of becoming an office owner.

1. Stable costs: A commercial mortgage can lock in your long-term costs for predictable cash flow. Plus, you avoid potential annual rent increases that come with leasing.
2. More tax deductions: Ownership can provide many valuable tax deductions, including mortgage interest, property taxes, and depreciation.
3. Additional income: Owning your office means you can rent out extra office space as another source of income.
4. Build equity: The long-term trend for commercial real estate is usually asset appreciation. You have a property you can eventually sell at a profit. The equity you build can provide the potential for long-term growth and stability.
5. Continuity: By owning versus renting, you can remain in your space for the long term, making it easier to develop your local market. A physical space can also convey more stability than rented office space.
6. Greater operational latitude: You’ll have more say over using or modifying your office space. Tailor your space to fit your needs and brand image without landlord restrictions. Paint the walls any color you want.

“I had the pleasure of working with FIGFCU when purchasing my first office building. Being a small business owner, it can be difficult to work with any bank. However, having someone familiar with my business and financial situation as an agency owner made it a smooth process!”
­­–Kyle Fincham
Agent

What’s your commercial real estate dream?
Whatever your agency’s circumstances and financial goals, speaking to one of our business consultants is a great first step in your buying process. We have more than 80 years of experience supporting agents.

Opportunities in commercial real estate are available, and we are lending. We finance office buildings, office condos, SFRs converted to offices, retail, and light industrial.

As with all investments, your unique circumstances will dictate how best to proceed and what approach provides the best ROI for your agency. Our dedicated team of commercial real estate loan officers will guide you every step of the way, ensuring you explore the best options available to you. And, remember, because they work for Farmers, their only job is to help you succeed.
     
Final thoughts.
We hope these six reasons help you realize that now is the time to buy office space. Even if you decide to bet on rates dropping soon, take these steps toward ownership. Examine your business plan and how becoming a property owner can impact your near- and long-term financial goals. Start looking at properties in your area. Or analyze if moving to a new area would help drive growth. When you’re ready to make the move, we’re ready to help.

To learn more about buying office space and agency loans, speak with one of our business consultants today or visit our commercial real estate page.

*Statista Research Department, “Vacancy rate of commercial real estate in the United States for quarter 2020 to 1^st quarter of 2024, by property type,” Statista.com. 3 May 2024. Accessed 25 June 2024.