Medical Office Spaces Just Leased

Carleton Compton leased 7,088 square feet of medical space on 66th Street in Pinellas Park to Florida Primary Care Centers, LLC. He represented the Landlord in the deal. Carleton also leased 2,345 SF of medical space to Labcorp in Downtown St. Petersburg. Click here for more information!

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Working with a Real Estate Agent that Understands the Criteria for Urgent Cares

Many commercial real estate agents have dabbled in the medical office arena but still may not truly understand … http://p.ost.im/p/eyKJNw

Market Trends: Office Asking Lease Rates

Is your rental rate higher than the current market rates? If so call  Carleton Compton 813-789-7729  today to discuss your options.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Why do a Sale / Leaseback?

What is a sale leaseback? Real estate sale leaseback financing is when a business sells its commercial property for current market value and then instantly leases it back.

What is the benefit of a sale leaseback?

  • This transaction frees up capital which can be used to invest back into the business.
  • It improves your balance sheet.  Since you will be leasing the property you can defer a good portion of the tax liability. With a lease you can write off the full payment each month whereas with a regular loan only the interest payment can be written off.
  • The other benefit is that you can get a lease for commercial property for up to 25 years, which can lower your monthly payments considerably. This gives you more operating capital each month since your monthly payments will go back down some.
  • It helps provide against functional obsolescence. If your office needs change you aren’t bound to off loading your property before you can seek a office that suites your business better.

How do I know if a sale lease back if right for me? If you answer yes to the following questions contact us at jscott@equity.net or ccompton@equity.net to discuss your options.

  • Can the building serve the needs of business for the next 10 years or longer?
  • Are there more pros to having the cash now then later?
  • Would a sell leaseback improve your financial situation?

Call or email us today to discuss your options for the disposal or acquisition of commerical real estate 813-579-2000, jscott@equity.net and ccompton@equity.net

Lease vs Buy- What’s the right choice?

Office Space: Lease vs. Buy

Many businesses, especially in today’s market ,wonder whether it’s better to lease or buy office space. Every business is different but the considerations below are generally applicable to all business debating the lease vs buy question.  These considerations can help you down the path to determining what the best solution for your company would be.

1.            Cash Outlay – Typically if you are planning to purchase an office, you can expect to make a down payment of between 10% and 25% of the purchase price, depending on the lender and your credit. When you lease office space you won’t need to put down nearly as much. With good credit, the typical outlay is the first and last months rent which is only about 10% to 15% of the cash outlay required when purchasing office space.

2.            Opportunity Cost – With the large outlay of cash required to purchase office space, the opportunity cost of that money needs to be taken into consideration.  What return would you expect to receive on that money compared to the return you would expect to receive if you invested the money back into your business or into other investments?

3.            Fixed vs. Variable Cost – When you buy office space, you have a good idea what your costs will be over the long term. This is especially true if you have a long term fixed rate mortgage. If you lease office space, the market will dictate what you will end up paying for rent over the long run.

4.            Growth Considerations – The growth phase of your business should be a major consideration in making the lease vs. buy decision.  If your company is relatively new and/or in a high growth mode, leasing would allow more flexibility and fewer constraints to that growth.  On the other hand, if your company is mature and stable, buying office space is great way to meet your future office space needs.

5.            Tax Factors –When considering the tax factors it is always very important to consult with your attorney and tax professional about the legal and financial considerations to owning office space.

6.            Cash Flow Analysis – The devil’s in the details.  In order to really understand the financial aspect of purchasing office space, you need to prepare a detailed comparative net present value cash flow analysis which takes into consideration your predictions on the future including holding period, anticipated appreciation vs. rental increase, interest rates, and cost of expenses increases. It is a good idea to do three different analyses, optimistic, realistic and pessimistic, to help determine your margin of error. It seems like a daunting task, but there some good programs available to help you do this analysis including:

Lease / Purchase – a sophisticated Lease vs. Buy Analysis

7.            Your exit plan Selling a business and real estate together may be more difficult. One will have a diminished outcome.

8.            Business vs. real estate needsBusiness owners often make real estate buying decisions based upon the needs of their business rather than the real estate market. The best time to liquidate real estate may not coincide with the time to sell the business.

The next Step…

Deciding and analyzing the details to determine whether a lease or purchase is best for your business can be overwhelming.   Obtaining assistance from a commercial real estate professional can help walk you through the process and simply the results.  Providing you with the best possible solution to your situation.

Why use a Commercial Broker?

Commercial real estate is highly specialized and the transactions can be far more diverse and wide-ranging than selling homes. Therefore, you should consider working with a commercial broker or agent before attempting to make investments in commercial real estate.

From leasing office space, to buying your next office or even just looking to renew your existing lease, experienced commercial real estate brokers, or agents, offer you accessibility to the most accurate details available in the commercial real estate market. They are able to help you understand the current market trends by pulling a demographic study of the market. They compare that with your current situation or with your target client to ensure you are leasing or buying the right space.

Whether you are buying, selling or leasing space commercial brokers and agents provide you with a clear understanding and a competitive real estate breakdown analysis that is appropriate in making sound decisions.

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