The average annual cost of office condominium ownership is historically less than the cost of leasing over a five to 10 year period. Current market lease rates for office space far exceed the annual office condominium carrying costs, which include common charges and real estate taxes. There are also a variety of attractive financing options available for established professionals.
Office condominium owners are insulated from the ever-increasing cost of leasing office space. An office condominium owner’s occupancy costs remain reasonably consistent and predictable, allowing for precise operating expense projections and easy budgeting, whereas tenants are subject to the fluctuations of the rental market and whims of landlords who may have conflicting objectives.
Own Your Improvements
Medical professionals, businesses and not-for-profits typically sink significant capital into rental office space to install necessary equipment. For these tenants, renting is risky because if they are unable to renew their lease they may lose this investment or be burdened with relocating their equipment. As a result, landlords can take advantage of tenants by extracting higher rents during lease renewal negotiations. By owning their office space, professionals eliminate future rent escalations and secure their long term space needs. Professionals who own their space can justify investing in a higher-end build out, which can give them a competitive advantage over others who lease their space. The higher-end build out improves their practice and increases the value of their condominium unit.