This year has been challenging for every sized business. But, despite the economic uncertainty, and rising interest rates, there are some silver linings. One is an abundance of office space and motivated sellers looking to cut their losses, meaning more bargaining power for you if you’re looking to purchase an office.
So, to get straight to the point, yes, now is a great time to buy, especially if you have contract value, which you can use 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.
- Stable costs: Having 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.
- More tax deductions: Ownership can provide you with many valuable tax deductions, including mortgage interest, property taxes, and depreciation.
- Additional income: Owning your office means you can rent out extra office space, for another source of income.
- Build equity: The long-term trend for commercial real estate is normally appreciation of the asset. You are left with a property you can eventually sell at a profit. The equity you build can provide potential for long-term growth and stability.
- Continuity: By owning versus renting, you are guaranteed that you can remain in your space for the long-term to develop your local market. A physical space can also convey more stability then rented office space.
- Greater operational latitude: You’ll have more say over how you use or modify your office space. Tailor your space to fit your needs and brand image without landlord restrictions. Paint the walls whatever 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!”
Whatever your agency’s circumstances and financial goals, a great first step in your buying process is to speak to your Credit Union, specifically one of our business consultants. Your Credit Union has more than 80 years of experience supporting agents.
Opportunities in commercial real estate are available and we are lending. We finance office buildings, office condo, 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.
To learn more about buying office space and our agency loans, speak with a Credit Union business consultant today.