Advantages of Buying a Business Condo instead of Leasing

Numerous small and big businesses alike are discovering the benefits of ownership in the commercial condominium market (also known as office condo). The professions who recognize this trend the most are CPAs, architects, doctors, attorneys, financial advisors, designers and dentists especially when the alternative is to lease the space.

A Business Condo is a space or suite located in a business or industrial park. Business Condo owners typically operate their business from these locations. Condo ownership in the business space is similar to ownership in a residential condo. There are Association fees as well as covenants, conditions, and restrictions for placing signs, business use and parking.

Condo Association fees are also known as C.A.M. fees (Common Area Maintenance.) The CAM fees are tabulated from an annual budget that is divided and billed equally to all business condo owners of a particular business park. The budget is created, modified and reported annually to all owners so that they are aware of the allowances being paid.

Condos can become available as separately divided units or multiple units. This will ultimately be the purchasers' decision. Getting into a purchase transaction for a Business Condo is very similar to a residential condo purchase. You will want to search for a competent and sharp broker who will negotiate terms in your best interest. Just like a residential transaction, a purchase price offer is delivered to the owner's agent. An earnest money deposit is necessary and customary. You will be given ample time coordinate and conduct your inspections on the property and the financial records. Your escrow will be managed by a third party escrow or title company and closing dates are scheduled according to the contract. Once at final closing you will be given title to your property.

Ownership of the business condo also lets you have tax advantages, property appreciation and gives you freedom to make interior improvements without having to consult with a landlord. Leasing a business condo can sometimes restrict your business growth path. If you are a tenant any improvement or modifications to your business condo need to be approved by your landlord. Furthermore, those improvements you made may very well be left behind and become ownership of the landlord if you relocate your business.

Another excellent advantage of owning your own business condo is you can sublease space out unless it is restricted by the Association or ordinances. Perhaps letting a experienced commercial agent sublease your office condo will be more advantageous and free up your time for other business investments and endeavors.

Mario Olivera is a investor and contributor with ByOwner MLS Homes and Office Condo Financing