Condo Developer is Starting to Get the Picture Relating to Having Business Owners Own Their Place of Business

Sep 26, 2013 by

Had an opportunity to sit down with the principles of InDevelopments today.  They called together a number of commercial and residential realtors to get our thougths on condo ownership and how they can better their efforts to have more business owners own their place of business.  It was an interesting opportunity to get some insight from other disciplines of commercial real estate and how users in those markets see ownership.  As a purveyor of Calgary industrial real estate I am fortunate as many business owners in my market are already considering ownership.  I get to preach to the converted so to speak.  However, my brotheren in the office markets are not necessarily as fortunate.  In the smaller space ranges (under 3,000 square feet) there is strong acceptance to the concept of owning versus leasing.  The numbers make sense and those that take advantage of owning are able to increase their overall personal wealth.  Email me for a comparison of how much additonal wealth you could create if you owned the space your busienss occupies.  The consensus across the table was that the numbers in todays market make sense.  Rental rates are high enough and interest rates are low enough to make it make sense from most smaller users.  There is still something holding back the larger users though.  Some are mired in greater issues around return on investment inside the business versus return on the real estate which frankly is a healthy perspective.  I often talk to my clients about their ROI on their business versus what I can get them relating to industrial building ownership.  Another issues that arose was the magnitude of down payments when you get into larger sizes.  Businesses coming up with 35% down creates stress.  All really great topics to explore.  Frankly I believe there is something greater than the just numbers at work.  As the InDevelopments guys put it “cracking the code” on building and space ownership is still a topic yet to be solved.  I however am up to the challenge and will continue to explore owning versus leasing for Calgary industrial and commercial real estate users.