Why Ownership Of Office Condominium Is More Than Justified
In New York City, office rents climbed to record highs with the average rental rates reaching $72 per square foot. Whether you are a startup or an established company, the drastic increase in office rental cannot be easily justified. Businesses have to look for a more stable economic solution by purchasing an office condominium. Investment in an office condominium is a long term solution that can stabilize business expenses. In every major city in the US as well as Europe and Asia, office condominiums are prevalent but in New York, it is a small but growing niche. There is 10.5 million square feet of office condominium in the city that represents 2% of the 500 million square feet office market.
Benefits gained from an office condominium
- The total annual cost of ownership is definitely less than leasing. Market lease rates at present far exceed annual carrying costs that include common charges, utilities, real estate taxes and mortgage payments.
- Exemption from the payment of real estate tax is only granted to non-profit and government organizations. Tenants leasing office space have to pay taxes on their leases no matter the status.
- If a business owns the office condominium, they will not be affected by any lease increases. Occupancy costs remain consistent and predictable to allow for accurate projections of operating expenses. In contrast, businesses that rent office space are subjected to fluctuations of the rental market and the whims of their landlords.
- Since the business owns the office space, construction and improvements can be made and are theirs to keep. When you improve a leased office space, the improvements would be lost by the tenant when the lease expires.
- Investments in remodeling and improvement can be justified if it means increasing competitive edge or enhancing the value of the real estate property.
If you want to Find Thai Property to be used as an office, there are new projects underway of various magnitudes to suit whatever requirements. A Thai property is a sound investment opportunity because you will own a piece of property in one of the most spectacular countries in the world.