May 26, 2018

Why Companies Should Buy Instead of Rent

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Why Companies Should Buy Instead of Rent

On a recent episode of the National Association of REALTORS®' Commercial Connections podcast, real estate professional Michael Bull, CCIM, highlighted several reasons why companies should consider purchasing office or industrial space, instead of leasing. Bull—who hosts the nationally syndicated "Commercial Real Estate Show" and owns Bull Realty in Atlanta—noted several reasons why market conditions are pointing some toward buying instead of renting.

  • Low replacement cost. Especially in suburban office markets, properties priced at $50/sq. ft. below replacement cost are widely available
  • Low interest rates. From federal programs providing 10% down terms and conventional loans with lockable rates, the credit picture is rosy, says Bull.
  • Lenders love working with owner-occupiers. Problem loans in commercial real estate were usually to parties who had nothing to do with the business.  Also, banks are angling for deposit and services business, and an owner-operator is more likely to be in the need for banking services.

The podcast also includes information about how REALTORS® can help their clients in the process and explains how controlling occupation costs, the business environment and creating a great investment property are all common goals in buying.

Source: Michael Bull—Bullish On Owning, The Source (Sept. 30, 2013)

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