A Good Investment for Rockford Commercial Real Estate

Most Rockfordcommercial real estate business owners must eventually confront the issue of whether to purchase or lease their office space. There are many factors to consider in making this important decision. For new dental practitioners who are uncertain of future space needs, and who want to ensure maximum cash flow as they grow their business, leasing may be a wise option. But for new or seasoned practice owners with a strong financial profile, a clear picture of future growth, and the ability to take advantage of the tax benefits of ownership, a commercial real estate purchase can provide a solid foundation for growing the business.

Following are a number of potential advantages to owning commercial property:

Historically low prices

Commercial properties for Rockford commercial real estate practices are far less expensive today than they were before the recession. In some areas, it may ultimately be less costly to purchase and outfit commercial real estate than to build-out and rent a leased space. While property values will not likely rise at the aggressive rates seen from 1998 through 2005, it is a safe bet that at today’s lower prices, both residential and commercial real estate values are likely to appreciate over time. The property owner will receive the full benefit of that appreciation.

Good financing rates

The most significant cost of purchasing real estate is the mortgage interest rate. Today, rates for commercial real estate purchases continue to be at an all-time low, ultimately saving significant funds as you pay down your commercial mortgage. However, obtaining financing can still be a challenge, so it’s critical to maintain a spotless financial profile and be prepared with a comprehensive business plan that makes the case for the viability of your practice. Also, consider working with a lender that specializes in dental practice financing and understands your particular needs.

Equity appreciation

As you build equity in your business real estate, it becomes a more valuable asset that you can leverage to further grow your business without putting your practice itself at risk. This gives you greater flexibility in managing your business growth. It also gives you additional options when the time comes to retire. As the commercial property owner, you can sell the practice and underlying property outright at the time of retirement, or sell the practice only and lease the commercial property, which produces an ongoing income stream.

If you purchase Rockford commercial real estate that has space for tenants, you have opportunities for additional cash flow through rental income. You can use tenant income to help pay down the property purchase, thus offsetting the cost of your investment. However, it’s important to remember that having tenants involves property management responsibilities that may detract from attending to your core business of treating patients.