Buying or renting an office condo space for commercial purposes has hit the real estate market with a running start. Living spaces once reserved for residential residency has proved to be a viable option for some kinds of business. Condo office space is plentiful, and the trend is growing across the country, albeit not yet in the major metropolitan areas.
Like everything else in life, there are pros and cons to moving your business into a condo. For some, the experience has a track record of proven success, and for others, traditional commercial real estate may remain the ticket. Office condo businesses are rapidly catching on across the country, however, they have not peaked in the major metropolitan areas. Phoenix may thrive better than New York City for the office condo revolution, and time will tell if the trend will move forward or in reverse.
Office Condo Advantages
1. Buying or leasing an office condo brings a bit of tranquility to the workplace with plenty of residential conversions located in the slower parts of town. The atmosphere is unhurried and often located in prime suburban neighborhoods with plenty of amenities nearby. Some office condos are easy access to grocery stores, restaurants and might even be handy to a dry cleaner. If the bustle of downtown is not your style, then an office condo may be right for you.
2. In most cases, the office condo is a good value for the rental or purchase price and makes a great location to do business, especially in the heart of suburban life. Although not every professional venture is suited for office condo businesses, they may serve as a prime location for lawyers, accountants, dentists, and chiropractors.
3. Ownership of the office condo property has shown a steady climb in appreciation, and may be a better investment in the long haul over purchasing a traditional piece of commercial real estate. In addition, office condo owners may take advantage of IRS code 179 to deduct over $100k in such case of accelerated depreciation through the first seven year period.
Office Condo Disadvantages
1. The office condo environment may not be suited for businesses that are uncertain of the space they will need for a lease or purchase. Although many of the office condo units are spacious, they do not work well with businesses that require heavy equipment or may be subject to stocking large amounts of inventory. A firm that does not have a clear vision for their company growth and a projection of the minimal space required will do better to refrain from an office condo purchase or long-term lease.
2. Businesses that depend on a hefty consumer client base may soon have disenchanted patrons who can never seem to get a parking space. The office condo parking is limited and can be a frustration to building clients that have to circle the block to park their car. However, if the office condo establishment favors clients with appointments, then the parking issue is substantially mitigated.
3. Although ownership of an office condo property has proved beneficial with appreciation, the concept is relatively new and does not provide a long-term track record for attracting a steady influx of renters. As with any real estate purchase, its prudent to explore all your options before signing on the dotted line. Be sure to evaluate all your circumstances and crunch the demographic numbers for statistical data that your office condo location is sufficient to sustain a client base.
Joe Cline writes articles for Austin real estate. Other articles written by the author related to Cedar Park real estate and Austin TX realtor can be found on the net.