Commercial Real Estate for Business Owners

With interest rates now at historically low levels and the United States economy growing at a strong pace, many business owners have been considering the purchase of the commercial real estate for their business locations. This is one of the things we value most at Commercial Realty Services of Long Island Inc.

Commercial Real Estate for Business Owners

The advantages and drawbacks of commercial property ownership differ from company owner to company owner but potential buyers should educate themselves about the apparent and sometimes hidden advantages to the possession of a commercial property. Following are a few of the most significant advantages of ownership instead of leasing a commercial area.

Tax Deductions

For many small business owners, one of the principal advantages of commercial property owners are the tax deductions which may be taken on the interest portion of the monthly business loan payment. These deductions can be substantial and each business owner should consult a qualified tax expert about their special situation.

Equity Appreciation

Normally, commercial property properties will value approximately two to three percent above inflation over the long run. This equity appreciation can lead to significant financial gains over a span of decades.

A Retirement Fund

Many small business owners won't get a pension when they opt to retire. The equity appreciation of commercial property could be significant. An operator can decide either to sell their property at retirement, cashing in on equity appreciation or rent it to another business for a constant retirement income stream. In reality, in many circumstances, a business owner might have the ability to rent out an unused part of his property, like a spare office, prior to retirement for extra income.