If you’re in the market for commercial real estate, then you need to carefully consider whether leasing or purchasing is in your best interests. With each option comes a number of responsibilities, obligations, and advantages.
While buying commercial real estate may give you more control over how a property is used, it also leaves you on the hook for maintenance and repairs. If that leaves you leery of purchasing, then if may be time to consider renting.
The rentable commercial real estate market, at least in terms of high-end office space, is relatively soft. There are a number of new office buildings in the Baton Rouge-area that are struggling to find tenants. In fact, three such buildings were constructed and opened just last year. These Class A rental spaces demanded leases as much as $30 per square foot, but they are having trouble finding businesses that are looking to take financial plunge.
The @Highland building only has one tenant in its three-story, 52,000 square foot space, and it has been open since 2017. Likewise, a 34,000 square foot building, known as the River House, has been available for more than a year but has not secured any tenants during that time. Even with these struggles, though, some investors continue to pump money into the downtown-area in hopes of seeing large returns.
With high supply and low demand, lease prices for commercial real estate may decline in the near future. Yet, as alluded above, purchase or rental price is not the only thing to consider when dealing with commercial real estate. Zoning and environmental restrictions, proximity to one’s client base, and even nearby infrastructure can all be important considerations when dealing with these matters. When trying to close a deal, whether it be to buy, sell, or lease a property, it is often wise to acquire the assistance of a skilled legal professional who can help ensure that a fair agreement is reached.