LONG ISLAND OFFICE BUILDINGS FOR SALE
What You Need to Know
Before making the “ownership” commitment, remember these fundamentals:
- Real estate is a sponge that sucks up capital
- The “break even” point for owning vs. leasing is about 10 years, and
- Real estate is illiquid, i.e., you may not be able to sell quickly when you need to.
Many real estate non-professionals (their primary business is not commercial real estate investment or management) succumb to the all too frequent lament, “I got to own because I’m throwing away money by renting”. Before you make the jump, ask yourself, “Would the money that you will tie up in the office building…”
- Have a greater ROI if it was invested in my company
- Be readily available if financial conditions change (personally or professionally), and
- Available to fulfill lifetime obligations and joys, i.e., college education, world travel vacation home ownership?
If you answered “no” to each of these questions, then congratulations, you’re a candidate for commercial real estate ownership.
Here’s a little secret. When you get into the office building for sale market, take a closer look at office condos. Why? Because, when compared to small, free-standing office buildings, office condos are generally located in preferred business neighborhoods; are superior in building quality and have on-site amenities. This distinction is better appreciated when don’t have to answer a 2:00 AM burglar alarm or worry if the 8 inches of snow will be plowed from your parking lot before your employees show up for work..