Wenham Office Space

Why Leasing and Buying Office Space Is a Great Idea

With its vibrant residential neighborhoods, this community has a large consumer base for new businesses. Its proximity to Boston also makes it a top spot for investors. With favorable real estate prices at the moment, now is a good time for investors to enter the marketplace. Businesses can lease a space for their new company or buy a property in the area. No matter what companies are looking for, they can find it within this area.

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Discover the Area

Listed as one of the best places to live by the Boston magazine in 2010, this community is located in Essex County. It spans 8.1 square miles in size. On the south, the town is bordered by Beverly. It is bounded by Danvers on the west and Hamilton on the northwest. The eastern border is made by Manchester-by-the-Sea. Meanwhile, Topsfield makes up the northwestern boundary. From the community, residents can reach Salem just 6 miles away. The city of Boston is just 21 miles to the south-southwest of town.

In the last 12 months, real estate prices have dropped by 6 percent. The median price for a home is currently at $525,000. At the same time, the average price per square foot dropped from $306 to $265.

Leasing Spaces in the City

Within this community, residents can find a variety of office spaces. Like the rest of Massachusetts, office buildings are classified as Class A, B or C. The high-end properties are classified as Class A structures. These units include the best locations, top amenities and new buildings. Class B spaces tend to be in less convenient locations or have fewer amenities. Meanwhile, Class C buildings tend to have the lowest prices and most flexible leases.

Finding the right lease depends entirely on what the business is looking for. If the company needs a lot of vehicle or foot traffic, locations in the downtown area and along major roadways are the best option. For manufacturing businesses or online start-ups, Class C structures offer a better price. Some businesses do not need to have a lot of foot traffic, so they can save on their leasing costs by investing in one of these alternative options.

Buying Properties

Buying a property is a viable alternative for companies in the area. When you lease a property, you have to worry about rental increases. You cannot just change the building's structure without the property manger's approval. When you lease a property, your options are limited. At any time, your rent could increase or the building could be sold to new management.

When you own the property, you pay a commercial mortgage instead of rent. Often, this mortgage is lower than what you would pay in rent. Unlike rent, your commercial mortgage remains at the same price. If you need to bring in extra money, you can lease additional spaces in your building. In addition, you can always deduct property taxes, your commercial mortgage interest and depreciation from your taxes.

If you plan on running your business over the long run, a commercial mortgage makes sense. Your customers need to know where you are located. If you have a stable, ongoing location, it is easier to build a vibrant customer base. Later on, you can always sell the property after you have earned equity in it. In the interim, the added equity can give you financial leverage for growing your business.

Listing Properties for Lease and for Sale

As real estate prices increase in Massachusetts, more companies are starting to lease or sell their units. If you want to develop a passive, ongoing income, leasing your property is always a good choice. You can operate your business in one of the units and lease the other ones to prospective tenants. This helps to cover your overhead costs and your commercial mortgage.

At some point, you may decide to sell the property. With real estate prices rising, this is a good time to exit the marketplace. Whether you are looking to buy or sell your units, Boston City Properties can help. Our team of real estate experts can help you list your property on the marketplace and find prospective buyers or tenants. Call us today to find out how we can help you with your property search.

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