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Is Now the Right Time to Buy Your Office Building?

Posted by Anne on May 13, 2024

By Elizabeth Holmes

Do you lease an office space and wonder what to do next: move to a better location, seek rent reduction, or cut down space altogether? There’s another option — buy the building.

As office markets across the country are still adjusting to the impact of hybrid work models, opportunities for companies to buy an office building at a cost-effective price.

In some submarkets in Greater Boston, the valuation of office properties has declined significantly. If you lease office space, it may be worth exploring the possibility of buying the building.
It is hard to quantify precisely how much office valuations have dropped, mainly because very few, if any, office buildings have changed hands over the past 24 months, and many were sold with the intention of redevelopment.

Nevertheless, we have seen a growing number of discounted sales and an increase in companies interested in “controlling their own destinies” regarding rent costs and other lease terms.

Here are some advantages to consider when owning the building you occupy:

  • Stability and Control: Imagine completely controlling your workspace without worrying about lease renewals or rent hikes. Ownership provides stability and control, giving you peace of mind for the long term.
  • Investment Opportunity: Instead of paying rent to a landlord, why not invest in your future? Purchasing the building offers potential returns through property appreciation and equity building, providing financial security and potential gains.
  • Cost Savings: Depending on the building purchase price, while the initial investment may be higher, owning can sometimes be more cost-effective than comparable market rental rates.
  • Customization and Flexibility: As an owner, you have the freedom to customize the space to fit your needs perfectly. No more waiting for landlord approval – you can create a workspace that enhances productivity and reflects your brand.
  • Control Over Growth: Imagine having control over your future growth plans. Whether you want to expand your business, generate rental income, or even sell the property for profit, ownership allows you to make those decisions.
  • Long-Term Stability: Ownership signifies a commitment to your business and the local community. It offers long-term stability and security, fostering growth and continuity for your business.

  • In summary, owning your property offers stability, control, investment opportunities, cost savings, flexibility, diversification, and long-term stability. It’s a smart move that can benefit your business for years to come.

    Exploring ownership could significantly enhance your business’s potential. If you’re considering your office space strategies, we’re here to help. Don’t hesitate to reach out to us for personalized expert advice on what may work best for you.

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