Over a 25 year period, owning your own, owner-occupied office building could equate to an additional average income of $158,000 per year.
Over the same period, leasing a space from another equates to an additional income of absolutely...$0.
For full details and a breakdown of projects costs/returns, go here:
Are you absolutely sure you want to sign your landlord's lease? You might want to think twice!
Does it sound too good to be true? It does to a lot of people. Except of course, those who already own commercial real estate.
Over the years, I have seen many clients lease office space for 10-15 years before building new. They often wonder what took them so long to invest into real estate. The two most popular reasons I hear why they didn't:
Don't Forget: The upfront costs of leasing and building new are very comparable.
The advantages of building ownership are worth exploring.
There is a reason people own commercial real estate and lease it out, specifically to professionals like you; it is profitable.
We have outlined, in detail (excluding tax implications, as there are too many variables), the financial differences between owning your own building for 25 years versus leasing the same building from a landlord.
In the end, the owner-occupant makes $3.95 million more than the person who leased the same space from a landlord.
Why pay rent to yourself instead of your landlord? You are going to have to pay rent to someone. Why not to yourself?