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Buying Vs Leasing Office Space in Houston

April 17th, 2009

New data indicates that the first quarter of 08. Houston’s office market closed the first quarter with favorable results. The continual job growth coupled with the growing demand for office space has kept this market stable and profitable.

 

Houston’s occupancy rate has increased by 87%, which is up 2% from the year prior. Those who wish to invest in buying commercial real estate in Houston can create positive cash flow, on the other hand business owners in need of office space would be better off leasing at this time. Things you should keep in mind when deciding are what’s most effective and profitable. Property investment in Houston can include high-rises found in the city’s skyline to single tenant homes throughout the area. There exist three categories known as A, B, and C class properties, each classification indicates a property’s condition and location. Those structures which bear the highest quality materials and design, are known as Class A. These properties stand in predominate areas that require the highest payments in the market. Properties which are a bit older and or located in less expensive districts are known as class B. Although often well preserved and custom designed, class B properties are a flexible choice for those who need to balance budget with image.

 

Class C properties, which have commonly are more efficient than creative are normally over 20 years old; however, they are firmly occupied, often located in mixed used property, Class C properties are usually 20% lower in rent than any given market.

 

The details outlined should help guide you with leasing vs. purchasing commercial real estate, you need to keep in mind that the cost of ownership is much higher with the required expenses associated, while leasing only demands an upfront cost which in most cases is lower than those costs again associated with purchasing. With leasing office space, your main costs should be limited to the security deposit and first month’s rent. Those who wish to own will face negotiating the actual purchase price and the putting down of a possible deposit plus maintenance duties and any renovations needed.

 

The key point to buying or leasing any office space in Houston, is to find a commercial real estate broker who’s both professional and reputable that’ll work with you to provide the appropriate resources needed based on your required needs.