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What are the benefits of owner-occupied commercial real estate?

By Greg Bell

To purchase commercial property with the intention of occupying it yourself is, essentially, going “all in” on your business. But if you’ve got the funds and success that can back up such an investment, then all the positives heavily outweigh the negatives.

Listed below are just a few of the most prominent benefits that come along with being the owner-occupier of a commercial real estate property (and certainly there are plenty more – as well as the many day-to-day perks that one can only discover as time goes on).

Long-term security

Owner-occupiers will often tell you the same thing, no matter what sector of business they might be in: When you choose to own the commercial property that houses your building, you’re taking a step towards long-term security, perhaps the biggest one possible. A good run in the short-term is one thing, but as an owner-occupier and business owner, you’re set up for truly generational success.

On a more specific note, it also removes you from the whims of the month-to-month real estate market. As we’ll talk about more later on, the property market in Australia has proven to be extremely unpredictable, with numbers currently in a big upswing. To remove yourself and your business from the rental market is just one of many ways that purchasing commercial real estate saves you significant amounts of money over long periods of time.

Simplifies the financing process

As most property owners will also tell you, one of the most challenging elements of the financing process is demonstrating, ahead of time, that you’ll be able to find enough tenants to fill up the building and quickly pay back the investment. But as the owner-occupier, you’ll encounter no such questions.

Now, you may still want to lease parts of the building to other tenants and businesses. And if you’re relying on those funds to cover your investment, then you will still need to illustrate how you’ll do so at some point during the financing process. But even in those cases, the amount you’ll be relying on from tenants will presumably be much lower – and, in turn, the extent to which it might complicate the financing process is likely to be minor, if anything.

Further incentives open up

Being classified as the owner-occupier of a commercial real estate property opens up the potential for tax incentives and other savings that simply aren’t available to building owners who lease out space. Be sure to speak with your accountant, and with other professionals involved in the sale of the building to ensure that you’re taking all the proper deductions on stamp duty and other costs related to ownership of the property

The property itself serves as a vital investment, with huge upsides

Finally, perhaps the most obvious benefit: While the property serves as a place of stability for your business, it also serves as an investment as well.

One recent report just published even described how longtime owner-occupiers of industrial spaces have begun to rent out in higher numbers, specifically because the market is so hot right now that they are able to use the money brought in by their properties to reinvest in the businesses themselves. For many of them, buildings purchased decades ago have become vital lifelines allowing their business to not only survive but thrive in the present day. The industrial property market will always have its ups and downs – but as an owner-occupier, you can ensure you’re protected through them all, and able to select how to best utilise the real estate investment you’ve already made.

Are you interested in purchasing commercial property in the City of Gold Coast, either for your own business or for other purposes? Be sure to see the listings provided by Ray White Surfers Paradise, and speak with one of our experts today about all that the market – and being an owner-occupier – has to offer.

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