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A commercial real estate investment can benefit your business

On Behalf of | Jan 26, 2018 | Commercial Real Estate |

Businesses come in all shapes and sizes. Different industries will present unique opportunities and challenges when aiming to grow your business and succeed in any given industry. While there isn’t a sure-fire way to determine if your business strategy is profitable or not, there are strategies that successful businesses have utilized that have been known to have a positive impact on the bottom line. One such strategy is investing in commercial real estate for your business.

Truth is, not all industries need a physical space in which to conduct business. However, many industries do require physical space, especially manufacturing and retail industries. Oftentimes when a business starts out, they don’t have the means or the capital to invest in a commercial real estate property. In order to bypass this, many businesses will lease space in order to lessen the burden of start-up costs and to minimize risk. However, once a business has become more established (this usually happens over time) a business should consider investing in commercial real estate.

Rather than leasing space, when a business owns the space they are building equity. When a business pays a rent payment, this is a cost that is unrecoverable a ‘sunken cost’ so to speak. When a business pays a mortgage payment, they are building equity and this is a more positive cash flow than is leasing or renting. At the Law Office of Kimberly A Abrams & Associates PA, we know how positively impactful a commercial real estate purchase can be on the bottom line of the business – both now and in the future.

Businesses should have short term and long term goals in order to capitalize in both time spans. A long-term goal often incorporates the goal of purchasing commercial real estate. While this goal might be unattainable for new business owners, it’s something a business can strive for in the long term. A commercial real estate deal that is tailored to you and your business is key to achieving the success your business is destined for.