Office ownership enables them to build equity, increase tax benefits, increase the value of the business by converting one of their largest expenses into an asset, and take advantage of current low mortgage rates and payments that should be no more than the cost of rent.

Office condominiums are most advantageous for medical practices, dentists, lawyers, engineers, accountants, architects, real estate companies, mortgage brokers, insurance brokers, financial professionals, and other service-oriented, small to mid-sized established practices and businesses that can predict their space needs with reasonable certainty.

The benefits of office ownership include, but are not limited to the following:

•             Lower Lease Cost: With interest rates historically low, small-business owners are discovering that mortgage payments for an office condominium can rival or even beat what they pay to lease office space.   

•             Equity Build-up: Rather than paying rent and having nothing to show for it, the office condominium owner builds equity for themselves rather than their landlord by reducing the loan balance with monthly mortgage payments.  Payments on a 20 year loan at 7.5%, for example, will reduce the loan balance by approximately 1/3 in 10 years.

•             Tax Benefits: Tax deductions available through ownership should exceed deductibility available to a renter.¹ 

•              Property Appreciation: Long-term property value appreciation has the major benefit of creating additional wealth for the business owner of an office condominium.  The condominium owner locks in their real estate costs and creates a long term investment for retirement, or a value-added asset if they decide to sell their practice.  

•             Business Control: The condominium owner has better control of their costs and their destiny, because they’re free from rent increases and negotiation of lease renewals.  They have predictable, stable monthly occupancy expenses, and can lock in a prime location at a fixed long-term rate even if rental rates increase.

•             Autonomy: Condominium owners have the freedom to customize their space and add amenities to meet their unique, specific needs, and they’re improving a space where they intend to stay, and that they own.

Depending on what assumptions you use, a ten year projection of cost savings of owning versus leasing on an after-tax basis over the long term can range from 25% to 50%.

¹ Note: We do not offer tax or investment advice, and always advise consulting with your own advisors and accountant to determine whether you will benefit from owning rather than leasing.

Click here for additional information on the benefits of CitiPlex Office Condominium projects.

Click here for a new Special Report: The Pros and Cons of Buying or Leasing Office Space.

Click here for Frequently Asked Questions About Office Condominiums.