In late June of this year, The Vancouver Sun published an article titled “Commercial Real Estate: Smaller Businesses Driving “Condo Office” Market to Curb High Leasing Costs. The report highlighted the fact that demand and investment is mounting, citing Colliers International report that by the third quarter of 2015, the $120 million worth of sales has nearly doubled the total from 2010. In the article, Kirk Kuester, Collier’s Executive Managing Director in Vancouver said that “small and medium-sized companies looking (are) looking to acquire their own spaces as owners,” mentioning that the economics now make sense for many smaller firms to own their own office space, with smaller legal, engineering, financial and insurance firms driving the demand for units typically in the 2,500 to 3,000 square feet range.

In smaller cities such as Nanaimo, real estate trends often follow trends happening in the city. Historically, a business would have to buy the entire building in order to own their own space, which for most small businesses was not financially feasible. The strata office concept allows for businesses to purchase their own space and reap the financial rewards that previously would have been passed along to the landlord. As a small business owner, if you are a homeowner consider why you have made the decision to purchase over renting long term. You may be thinking:

-To build equity

-Real estate generally appreciates over time

-You’d rather pay yourself than your landlord

-If you are financing, eventually you will own your home outright

-You feel more control

-You don’t want to have to answer to someone

-There will be no unexpected rent hikes

-It offers diversification from financial assets

The list goes on… Each and every one of these apply to the purchase of your own commercial space. There are actually additional tax related benefits with commercial property not available for your principal residence and many business owners are surprised to find out that the monthly cost of ownership in some cases can actually be LESS that it would cost to lease.  

With the strata office concept taking off in larger centre’s, Pacific Station offers a great opportunity for you to get in ahead of the crowd and start benefiting from the countless benefits of strata office ownership today! For more information on Pacific Station, please contact Commercial Real Estate Advisor Devin Jahelka at 250-751-0804 or email info@jahelkagroup.com

www.pacificstationoffices.com