The Commercial condo market in New York is a niche market but the market is growing. Many tenants realize that they have an opportunity to better control their costs by owning their workplace. LSL Advisors can help. We have an experienced team that specializes in commercial properties of all types.
Should you decide in the future to relocate or even close your business, the commercial condo you own is an asset that can be sold or leased to another business, providing an income stream.
Additional Advantages of Owning a Commercial Condominium:
-Commercial condominiums may also be located in mixed-use or multiple-use buildings.
-Tax benefits relating to depreciation of the asset.
-A commercial condo owner can take better control of occupancy costs aside from possible increases in real estate taxes and condominium assessments.
-For some commercial condo owners, it may be advantageous to be located adjacent to other complementary businesses.
-Many not-for-profit entities enjoy additional savings by purchasing a condominium for their businesses. These entities can be exempt from real estate taxation.
-In most cases, the entire complex is managed by a professional property management firm so you can concentrate on growing your business and operating more efficiently without worrying about building maintenance and financial management.
Pending FASB 13 accounting changes and their impact on Commercial Real Estate and Commercial Condos
FASB 13 accounting changes will increase the administrative burden on companies and the leasing premium for single tenant buildings will effectively be eliminated. The impact of this proposed change will have a profound impact on leasing behavior of tenants. Single tenant companies may find it advantageous to simply own the building since a lease of the property will be of record on its financials due to the FASB 13 changes.
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