![]() Here are some of the potential risks a business faces when buying: The last thing you want is to buy property and realize a year or two later that you would have been better off renting. Purchasing Commercial Real Estate: Deciding to Buy Versus Lease When deciding whether to buy commercial real estate, it's important to understand the potential risks. The following guide will help a small business assemble a real estate search team, choose a location, and purchase property. ![]() That decision must be weighed by each business. "The other benefit would be investment benefits, including depreciation of the property for tax purposes and, over the longer term, asset appreciation." There is no one-size-fits-all strategy for purchasing commercial real estate. Why should a business buy? "To get a greater control over the cost of the real estate component of overhead, as opposed to leasing, where you can be victimized by the market if the lease rolls over when the market is tight and, as a result, you have higher rental costs," says William Martin, chair of the real estate group in the Denver office at Kutak Rock LLP, a law firm with 400 attorneys and offices around the country. At the same time, for a business, on the upside the potential rewards can be substantial. It's also a venture rife with risk, as buyers, sellers, agents, and renters alike can suffer the consequences of a dip or spike in demand. Papudesu has degrees from the Indian Institute of Technology and Massachusetts Institute of Technology.Every few years, the real estate market suffers through a crash or a correction and underscores a perpetual dilemma for small and mid-sized businesses: Is it better to rent or own commercial property? Buying commercial real estate is a complex undertaking that is difficult even for experts to time right to maximize their investment value, let alone entrepreneurs or business executives whose areas of expertise are in different industries. His professional experience includes both financial and real options and he has developed a trading application aimed at the energy trading market and spreadsheet models to calculate real options. Chandra Papudesu, M.S., is a senior project manager involved in directing complex software implementation projects and new business development at a software development company. He is a contributing author on four books and has co-authored two books and more than 40 technical articles.Mr. His degrees are from the Illinois Institute of Technology, Cornell University and Rutgers University. Environmental Protection Agency and the Kansas Department of Health and Environment for his outstanding contributions in environmental science and engineering. In 2005, 2Ci received InnovateIllinois award for being the most innovative small business in the environmental category in Illinois. Kodukula is also co-founder and president of 2Ci (where he is involved in developing environmental and homeland security technologies. ![]() His clients include 15 Fortune 100 companies and the U.S. He has spoken in 15 countries to a total audience of more than 100,000 people on project management, project portfolio management and leadership skills. (is a management consultant, executive coach and inventor with nearly 20 years of professional experience. Prasad Kodukula, PMP, President, Kodukula & Associates, Inc. Reprinting Research and Shipping LogisticsĪuthor BiographyDr. ![]() Schools, School Libraries, and School Supply Stores.Independent Booksellers and Regional Wholesalers.IPG Academic and Professional Publishing. ![]()
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