Commercial Office Rent: All That You Need To Know
As a small business owner, it can be very challenging to grow your business, remain profitable, and maintain a balance in life with your family. Some property managers can manage 50-100 properties without the need of a full time employee or commercial office. However, once the portfolio exceeds 100 units, an owner needs to consider hiring an employee and opening a commercial office.
Rates had been on the rise since 2002 when they fell dramatically and steadily starting second quarter 2007. This is the first time since the second quarter 2007 - two years - that office rates have increased - a strong argument that the bottom has been reached.
There are favorable and unfavorable points to renting business facilities. A number of persons believe that leasing for retail space for rent is a matter of your money in the garbage. If you have the means to invest in the purchase of commercial retail space for rent, it is most likely the preferred way to go.
Renting office suites to small business owners is extremely profitable. We rent each suite for $400-$500 per month. Both office condos cash flow several hundred dollars each. Not only does this give me a free office, but I plan to use the yearly cash flow to payoff the mortgages within 10 years.
Corresponding with office rate increases will be the tightening of supply as very few new office buildings have been built in the last 18-24 months. As tenants begin to re-focus their attention on growth and hiring for that growth, occupancy will see increases simultaneously with limited supply which in turn will see rising rates.
Rent increase, while minimal at this moment, will have impact on the pre-existing mind-set of recession-era companies who maintain a belief in bargain hunting. With building owners now clearly showing they have limits in their borrowing power to satisfy hungry tenant improvement needs, tenants may find the right buildings increasing in rent while the wrong buildings languish. The slow movers in lease rates do, however, play a key role in accommodating lower-end tenants as they move up in quality.
Knowing when to list commercial retail space for rent is just as vital as knowing when to obtain it. Whether you are expanding your organization, need additional space or have realized that it’s time to relocate, planning the sale of your commercial retail space for rent when the market is right will save you a great deal of funds. If you need to sell when the market is down you’ll most likely have to lose money on the transaction.
I encourage property managers to consider making the investment to purchase an owner occupied office and sublease to business professionals. Not only can you have a free office, you may generate business leads from your business tenant relationships.
You’ll never have to worry about need to rent office space again! Visit us on the web at commercial office rentto learn more.