Empowering Growth: How Owning Commercial Property Elevates Your Business

As a business owner, you’re constantly seeking paths to enhance stability and growth. Transitioning from leasing to owning your commercial space could be your strategic game-changer. This article highlights five compelling benefits of property ownership and navigates through federal loan programs, aiding a seamless shift. Ready to uncover if this pivotal move aligns with your business vision?

Five Benefits of Buying Your Building:

  1. Tax Advantages of Owning: Maximize tax savings by deducting interest and depreciation on your commercial property. For instance, with $3,000 monthly interest on your mortgage, you could deduct $36,000 annually, potentially offsetting taxes on $100,000 in profits. Note: Consult a tax expert for tailored guidance.
  2. Rental Income Potential: Transform your property into an income source by renting out parts of it. A small distribution business in Round Rock, Texas, enhanced its profitability by renting out a section of their building, boosting their cash flow significantly.
  3. Stable Monthly Payments: Say goodbye to unpredictable lease hikes. Mortgage payments often match or fall below rental fees. A roofing company in Austin exemplifies this, securing a larger facility with lower annual payments compared to their previous lease, fostering business growth.
  4. FlexSpace Customization Freedom: Own your space, own the rules. Customize your facility to align with your business needs, free from landlord constraints. A machine shop in Cedar Park, Texas, is a testament to this, enhancing security and client engagement by owning their premises.
  5. Retirement Stability: Invest in your post-career life by retaining your property for rental income post-business sale. A marketing studio in Leander, Texas, became a retirement income source for parents who purchased it to support their children’s venture.

Financing Avenues:

Engage with your local Community Bank for purchasing your space, fostering a beneficial long-term business relationship.

Federal Loan Programs – Your Gateway to Ownership:

  • 7(a) Program: Offers variable or fixed rates, with down payments typically between 20-30%, catering to early-stage businesses or unique facility needs.
  • 504 Program: Features fixed rates and a modest 10% down payment requirement, ideal for established businesses aiming for specific project goals.

Top 3 Reasons for Small Businesses to Invest in a WorkspaceUSA Property:

  1. Build Equity and Wealth: Each payment fortifies your financial foundation, enhancing borrowing capacity and securing resources for your golden years.
  2. Cost Predictability: Owning your property ensures stable mortgage payments, shielding you from leasing uncertainties and potential property sales.
  3. Cash Flow Preservation: Utilize low down-payment options to finance up to 90% of your property’s cost, freeing up capital for essential business initiatives.

Expert Perspectives:

  • Chris Hurn, CEO of Fountainhead Commercial Capital, champions SBA 504 loans, highlighting the affordability of property ownership and its role in wealth accumulation.
  • Kevin Partington, Executive Director at Cushman and Wakefield, advises businesses to weigh the long-term outcomes of leasing versus buying, considering the future utility of the owned property.
If owning your business property has been on your mind, it’s time to delve into the conversation. With compelling benefits ranging from tax perks to retirement security, and supportive federal loan programs, property ownership stands as a robust pillar for your business’s long-term prosperity and stability. Evaluate your options and take a decisive step towards securing your business’s future today.