Commercial Basis explores how technology, branding and demographic preferences are shaping office and retail real estate in New York City. As these forces break down the barriers from where we live to where we work and shop, Lead Commercial Specialist Alex Cohen will assess the impact on real estate values and opportunities.
Firms looking for office or retail space in New York find that the majority of opportunities are available only for lease and not for purchase. But for entrepreneurs and other private business owners who have the ability to purchase (and finance) the acquisition of real estate to lease to the businesses they own, the hunt for relatively uncommon commercial purchase opportunities may be worth the extra effort and due diligence. The most important location criteria for selecting any office or store must be accessibility to talent and visibility to targeted customers. No matter how attractive a commercial purchase opportunity may appear, any location that potentially hinders a firm’s prospects should generally countermand the benefits and opportunities presented by property ownership. Leasing space also typically provides much more flexibility (and liquidity) if a company is growing, unless a purchased building or condominium provides surplus space into which the business may grow.
There are very clear potential investment, tax and business expense advantages for a company’s principals by owning the real estate that can be leased to the firm owned by these same principals.