Many of our customers have been delighted in owning the Commercial Real Estate used by their closely held businesses. Owner occupancy can provide them the advantages of stable rents for their businesses and appreciation for themselves. Other benefits to the owner/occupier of Commercial Real Estate include the ability to employ advantageous tax strategies (reduce tax liability, offset taxes from other investment sources, etc.) and, of course, the control of the commercial property’s tenancy.
Owning Commercial Real Estate is a wonderful asset diversification as well. The addition of commercial real estate to a typical investment “stock-and-bond” portfolio often provides a reduction in portfolio risk without the sacrifice of return.
And to return to another common theme at Amy Bush Commercial, if one outgrows ones space or desires to move ones location, the IRS code “Section 1031” provides the opportunity to do a tax-free exchange of a property for a like-kind property. We have blogged on the 1031 exchanges, but it is worth repeating that the tax law is generous in defining like-kind in the case of commercial real estate.
Finally, in our experience with local banks, acquiring a loan on an owner-occupied commercial real property is straightforward. Lenders ❤ owner-occupied.
We like to recommended that business owners strongly consider owning the Commercial Real Estate associated with their business and rent from themselves!