Page 3 - CRE Catalog Fall 2017_FlipBook

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LOCAL KNOWLEDGE REAL OPPORTUNITIES

RENT KEEPING SKY’S THE LIMIT?
RENT KEEPING YOU DOWN?YOU DOWN?
12 REASONS TO OWN YOUR BUSINESS PROPERTYTO OWN YOUR BUSINESS PROPERTY WHAT’S MY BUILDING WORTH TODAY?
12 REASONS
Commercial Real Estate is where Business Happens and owning In today’s escalated market I am receiving many calls from property
your business property is typically the most sensible and right owners inquiring about selling their properties. It would seem to
decision, not renting the property your company occupies…It’s a be a good idea given the vacancy factors and sales prices in SoCal
function of working out purchase details to start your way to Real Estate, however, there is often times a huge disconnect and
becoming a real estate multi-millionaire from the rents your confusion by some owners on how the market will consider the
company is ALREADY paying. value of your property.

1. Passive Retirement Income:Commercial buildings have 1. Owner/User Sale – Property being sold vacant at the close of
historically produced NET rental income around 6% per year. On escrow. This is the most common way for most buildings to be
top of that, rent increases are usually between 3% and 5% per year “SOLD”. This means that when the building closes escrow the
which means this return should increaseat or above the rate of tenant/owner/occupant will vacate and a new owner/tenant/
inationduring the life of your investment. occupant will occupy. In this scenario, the value of the property is
typically determined based upon market place comps.
2. Increase Business Sale Value:Obviously, when you decide
to sell your business, you’ll get more for it if the business doesn’t 2. Investment Sale – Unlike the above sale scenario, this sale
have to move. This also means you’ll have a possible “built-in” long- would contemplate the sale of the property with tenant/occupants
term tenant for your building. in place at the close of escrow. This type of sale is considered an
investment sale and buyers determine value much dierently than
3. Tax Shelter:Because of theLARGE “NON-CASH”depreciation the “owner/user” sale. In this sales scenario the value of the
deduction, you should probably be able to shelter a SUBSTANTIAL property can be easily calculated with the following information;
amount of your personal income since the rent you charge your
company can be signicantly less than your total tax deductions.
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ing-you-down-12-rea-
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CAMERON JONES 888-200-4411 ext.2244 cameron@ashwillassociates.com
BRE Lic # 01770606
DISCLAIMER: This information contained herein has not been verified by real
estate brokers. Although we have no reason to doubt its accuracy, we do
not guarantee it. Buyers and tenants should verify information independently. @CameronJonesCRE /CameronJonesCRE www.socalcommercial.com
ORANGE COUNTY LOS ANGELES BREA FULLERTON COSTA MESA BUENA PARK GARDEN GROVE 3