Making the Leap to Purchasing Denver Commercial Real Estate for Your Small Business
April 20, 2016
Leasing is a very popular choice for small business owners to have a workplace for their employees. Having a quality workspace at a great price is crucial. But when should you begin considering purchasing Denver commercial real estate for your business? Is that leap worth it?
Evaluating: The top priority when considering purchasing a space comes down to your bottom line. A great starting point is determining how long you plan on staying in a certain space. The longer you plan on staying in a certain place, the better it would be to buy. Seven years is a good amount of time to start with. If you find that you plan on staying in a space for at least seven years, you may actually save thousands of dollars by owning.
Location: Choosing the right location for your business is crucial and definitely is a serious consideration when moving. If you are looking into a long-term solution to potentially sell one day, a building near a largely populated area, metropolitan city or near a university or hospital will increase your chances of a quicker sell and give you a higher value.
Benefits: Property ownership has many benefits with one of the best being the ability to control your environment. You will have complete control of the exterior appearance and can make changes as needed. This is great for the inside of your building too, making workspace possibilities endless for employees as you will not need to have changes approved by the landlord. Next, having a tangible asset is extremely beneficial to your portfolio. Last, you have the stability of knowing what your mortgage is each month as opposed to having rent increases.
Long Term Goals: Staying in the same commercial space long term will pay off in most cases. Plus, if you come to the point where you need to get into a larger space (or downgrade), the market and quality of the building may allow you to make a profit upon selling the business that you could put back into the company, invest or keep. You can also consider renting out your space when you are ready to leave.
Market: When evaluating making the leap to commercial real estate, it is important to work with your local Denver real estate expert on how the market is. Depending on how the market cycle you may want to jump on an opportunity or hold off. They can help you with analysis and when is the best time.
When you are ready to make that leap from leasing to owning commercial real estate, our team at The Sherman Agency can help. Since 1964 we have been working with the Denver real estate market to be your premier go-to agency and specialize in innovative and creative solutions to complex real estate problems. We will provide extensive market research to help you feel confident in your decision. View our commercial property listings and give us a call at 303-572-8778 to get started!