With interest rates now at historically low levels and the United States economy growing at a strong pace, many business owners have been considering the purchase of commercial real estate for their business locations. The benefits and drawbacks to commercial real estate ownership vary from business owner to business owner but potential buyers should educate themselves about the obvious and sometimes hidden benefits to the ownership of a commercial property. Below are some of the major benefits to ownership as opposed to leasing a commercial space.

For many business owners one of the primary benefits of commercial real estate ownership are the tax deductions that can be taken on the interest portion of the monthly commercial loan payment. These deductions can be substantial and each business owner should consult a qualified tax specialist about their unique situation. On average, commercial real estate properties will appreciate about two to three percent above inflation over the long term. This equity appreciation can result in significant financial gains over a period of decades.

Many small business owners will not receive a pension when they decide to retire. The equity appreciation on commercial property can be significant. An owner can decide either to sell their property at retirement, cashing in on equity appreciation or lease it to another business for a continuous retirement income stream. In fact, in many situations, a business owner may be able to lease out an unused portion of his property, such as a spare office, before retirement for additional income.

Great fixed rate loans for terms up to 30 years are now available for owner occupied commercial properties. In fact, in some instances, with strong financials, a business owner may qualify for loan financing up to 100% of the purchase price for his commercial real estate. Business owners should consult an experienced commercial mortgage adviser before making an offer on a commercial property. In addition to the easily tangible benefits outlined above the business owner who purchases a property to house his business location will be able to have the satisfaction that only comes with ownership and he won’t be making his landlord rich.

Serviced office spaces also include other facilities such as on-site security and cleaning, in-house IT and communications departments and general management facilities. Instead of having to organise all of these separately, choosing a serviced office space means that all of the features offered by the building management company are included in the monthly rent.

This can be of particular benefit to start-up companies by giving them a set amount each month to budget to. Rather than trying to add up a series of random costs, a single figure covers all the eventualities and utility charges, allowing a business to ‘live within their means’ without any loss of provisional services. This makes bookkeeping and accounting much easier. In a standard, unserviced office costs can quickly mount, taking the company over budget. It may be something as simple as the cost of installing additional telephone sockets or lighting – items that in a serviced office are often included in the single monthly fee.

Security issues are also a consideration. In unserviced buildings, each individual business usually pays towards the security costs of the building, and if the building management decides to upgrade the security system, the additional costs can cripple small businesses. In a serviced office arrangement, the fees are included into the final monthly total, which stays at a set amount for an agreed period of time. This gives businesses the reassurance that their security is being maintained without having to add additional costs into their budget.

One of the most important benefits of a serviced office space is the flexibility it provides, enabling businesses to upgrade or expand quickly without having to eat into company funds to cover the additional costs of expansion. Many serviced offices also offer short-term leases and flexible break options, meaning that if your business is forced to relocate for whatever reason, then a temporary base can be set up in a serviced office space whilst you look at a more leisurely pace for your final business address. This means that the business can continue to operate without interruption, ensuring that you do not lose your place in the market.

Serviced office space offers a comprehensive solution to most business location situations, particularly for start-ups, small businesses looking to expand without too much additional cost and for businesses in transit between locations. With the current economic climate, there are plenty of serviced offices available at bargain prices, and management companies are often open to negotiation.