5 Reasons to Buy Your Own Office in Houston

Most businesses rent their office space. Often, this is due to cash-flow considerations. However, for many of these businesses, a commercial Realtor would be able to find commercial real estate for the same price or less than what you're paying now. Here are five reasons it may be worthwhile to buy an office for your business:

Control

When you work with a commercial Realtor to buy a building, you have total control over it. Unlike having a landlord, you do not need to get approval for any build-outs or customizations within the building. You can change the landscaping and you do not need to rely on someone else to paint the exterior when it starts to look shabby.

More importantly, as your needs change, you have total control to reconfigure your office. If your business expands and you need to knock down a wall for a larger bullpen area, you can do that. Your building is under your control when you own the property.

Permanence

If you do not like the idea of moving every few years, owning a building can make an enormous difference. The cost of moving every few years does not just include the few thousand dollars for moving fees; it also accounts for the loss of productivity throughout the moving process.

Moreover, most businesses have equipment that requires specialty movers. For example, your insurance company may require that you hire specialty movers to move expensive computers or fragile laboratory equipment. Instead of struggling with the stressors of impermanence, finding a great location that you can change is far more cost-effective.

Build Equity

Equity in commercial buildings is an asset to you and, in this respect, office buildings are incredible commercial real estate investment opportunities. Essentially, you receive a double benefit from buying a commercial building that you occupy. First, your business has a home. Second, your business acquires an asset.

While the standard minimum down payment for a home is around 20% of the loan amount, a Small Business Administration (or SBA) commercial real estate loan may require a down payment as low as 10%. While a lower down payment may mean that your equity grows slower, that 10% down payment is not lost the same way that a rent deposit may be. Rather, that 10% down payment is equity that will be recovered when the property is sold.

Alternate Revenue Stream

If you have planned ahead, or just want an extra revenue stream, you might acquire a building that is larger than you need. Your business can then work with commercial Realtors to rent out the unused space. This becomes an extra revenue stream for your business. This additional revenue might substantially offset your SBA loan payments, thereby reducing the cost of acquiring the building.

Sell at a Profit

Working with a commercial Realtor can help you choose a great building that will only increase in value. Hopefully, one of the discussions you had with your commercial Realtor was the potential appreciation of your building. Perhaps the area your commercial Realtor recommends is undergoing redevelopment or will have substantial road or transportation upgrades. These neighborhood improvements can make a savvy investment even more profitable down the line when you look to sell.

Buying a building for your business can make a lot of sense. When you're ready to talk to a commercial Realtor you can trust, rely on the Williams Group to start your journey.