Money Matters

Your Credit Union Newsletter

Why You Should Buy Your Office Building


If you can make it happen — and with a good financial partner, like your Credit Union you can — buying can be a better option than renting.

This does not mean renting is all downside — but there can be significant advantages to owning.

The good news for 2019 is that analysts, like those at Real Capital Analytics and Colliers International among others, widely predict this year will see flatter office-purchase prices due to falling demand (down as much as 17%) in business districts. Not a bad time to buy!

These are the top reasons agents should consider buying versus leasing an office:

  1. Build equity. An asset can appreciate or depreciate in value of course, but long-term the trend is often up. This means it’s likely that you’ll have a property you can sell at a profit.
  2. Stabilize costs. Landlords can increase rent substantially each year. But when you own, you’re the landlord. You control this important fixed cost and can plan your business better as a consequence.
  3. Improve cash flow. In many cases, the monthly cost of owning is less than you’d pay in rent. Your Credit Union has additional loan options for agents looking to boost their cash flow. Get great flexible terms and rates, and no prepayment penalties.
  4. Tax deductions. Costs of ownership, including maintenance of your commercial property, can provide you with tax deductions, including mortgage interest, property taxes, and depreciation.
  5. Not locked in to a fixed-term lease. With ownership of your building, you have (in theory) the option to sell, or lease out units, whenever you want.
  6. Greater operational latitude. You’ll have more say over what you can do and when you can do it. When you rent you have to deal with whatever restrictions a landlord might impose.
  7. Generate income. If you buy a multi-unit building, you may be able to rent out units and generate rental income. Your Credit Union has low rates on commercial real estate loans, making ownership an even more attractive option.
  8. Continuity. By owning versus renting, you are guaranteed that you can stay put in one location long enough to develop the local market and build a sustainable business. Renting is much less secure.

As with all investments, your unique circumstances dictate how best to proceed — whether owning or renting — and what will provide the best ROI. Your Credit Union Business Consultants will be happy to visit you and review the best options. Their job is to help you succeed.

For more information, email our Loan Officers at, visit, or call 800.877.2345.

Share this article