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Old 28-05-2011, 10:09 PM
albertselton albertselton is offline
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First recorded activity by GardenBanter: May 2011
Posts: 4
Default Commercial Real Estate - 7 Compelling Reasons Business Owners

I already feel your skepticism. Buy commercial real estate? This year? Doesn't this guy know that vacancy rates are skyrocketing, unemployment is on the rise and market sentiment is that commercial real estate will be "the next shoe to drop"?

Actually, I do, and I want to be very precise with my strong buy recommendation. This article is specifically for business owners who are currently leasing space and who also intend to be in business for at least the next 10 years. If that's you, the remainder of 2009 may present the best buying opportunity you will see in your lifetime. Consider the following:

1) You Need a Place to Operate Your Business

This may seem obvious, but unless you've set up shop in your home, every business needs space to operate. You've already decided to be in business, now you must choose to either rent or own your space.

Real estate rental costs are typically the third largest expense a business incurs (after payroll and taxes). On average, lease payments typically increase by 3% or more per year, every year. Finding an ideal location to purchase can convert this large, consistently growing expense into an investment that you will someday recapture, hopefully with a nice profit, when you eventually sell the property.