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Frequently Asked Questions
How important is location when buying real estate?
Why should I expand or move from my current location?
Is ownership better than leasing even if I have a low lease rate?
What are the benefits of ownership?
What defines quality and value in an office development?
What financing options are available?
What should I expect during the tenant improvement (TI) process?
How much space will I need?
Why do standard features matter in my decision?
Why is a good parking ratio imperative?
How important is the relationship that I will develop with the COBE Development Team?
How important is location when buying real estate?
How many times have you heard the phrase, “Location Location Location?” For years savvy buyers have understood that location is the key. Independent of your type of business, if you are in a good location your opportunity for greater success increases dramatically.
At COBE Development we are committed to develop in locations that meet the acid test of prime locations. The following are elements that when combined make up a successful location for business growth.
- Current and estimated population growth and trends
- Income per household
- Located on major arterial roads and close to freeways
- Convenient and easy to find
- High traffic counts
- Surrounding commercial synergy
- Proximity to schools
Ask yourself; what factors do I think make a good location?
Click here to see what some of our buyers have said.
Why should I expand or move from my current location?
Here are a few reasons that could inspire you to move:
- Not enough or too much room in your current office
- If moving into an ownership position would be more advantageous than leasing
- To upgrade your professional image
- Expanding allows you to capture clients in a new market
- To invest in an asset that can appreciate
Is ownership better than leasing even if I have a low lease rate?
It is not about which is better, it is about what works best for you. Sometimes leasing is the only option you have available. Not everyone can own; this is when leasing or lease-to-own options become favorable.
Owning has certain benefits that leasing can not give you. Owning your office frees you from landlords and annual rent increases. You are able to take advantage of the appreciation that can take place over time. There are also numerous tax advantages with ownership. Owning your office is an asset, leasing is a liability. With ownership, you can sell or lease your office when you retire, you can’t sell a lease.
What are the benefits of ownership?
Taken from the Nov. 5 2005 Grubb & Ellis Office Condo Report
Click here for the most recent Grubb & Ellis reports.
- “-- Several factors drive the decision to buy office space. Many of the same dynamics driving the residential condo market are driving demand for office condos – not only is financing favorable, but real estate has become a desirable investment…
There are many advantages to owning one’s office space. Owners are protected from rising rents, while gaining control over their place of work. As noted above, the cost of owning may actually be lower than the cost of renting. Effective rents are often higher for smaller tenants, as they are not offered the concessions packages used to lure big tenants. Tax benefits are debatable, as owners can deduct mortgage payments, depreciation, and repairs, but rent payments are also deductible. Office condos, however, can also provide a means of sheltering some income – the business owner (or owning entity) purchases the space and the company then leases it back, with this payment typically sheltered 100% (written off as an operating expense).
Monthly payments are stable, with no rent escalations or renegotiation at the end of a lease term...Owners can share maintenance, insurance and tax costs with the other owners. Typically, a management association is in charge of property maintenance and upkeep. Finally, owning an office condo adds value to your business as it can be part of the business.”
What defines quality and value in an office development?
Quality is a combination of exceptional architecture and superior materials that will result in a building you will be proud to own. The standards of building design and the highest quality of construction is built to last. The inviting building designs will help strengthen your success as it attracts new customers to your business.
Value begins with a fair price that is beneficial for both the buyer and the seller. When buyers purchase at a reasonable price, they benefit from sustained appreciation of their property. COBE is committed to the principle that true value is obtained when the buyer and seller feel like they have both won.
Value to our buyers extends well beyond price, as it includes several key components in the development and building construction including: Higher parking ratios, HVAC, fire alarm control panel, concrete slab floor, wall and ceiling insulation, lower Common Area Maintenance fee's, and greater interior ceiling heights.
What financing options are available?
Depending on your financial situation there are many different loan options; in some instances 90-100% loans are available. Whether your situation calls for a conventional or SBA loan, COBE Development will introduce you to several lenders that can tailor a program to meet your financing needs.
Click here for a testimonial.
What should I expect during the tenant improvement (TI) process?
You will have to select an architect and a builder that will help you design your office and select finish materials. You will also need to coordinate all the necessary furniture and office equipment for the set up of your office (phones/fax, internet, computers etc.)
COBE Development is committed to helping you stay focused on your business during this time by:
- Introducing you to architects that will help you design your TI plan
- Recommending quality builders
- Making introductions to vendors that can aid in your office set up and/or transition.
Click here for our Closing Checklist
How much space will I need?
This depends on what you do. Everyone has different needs. You will want to consider a few things before making a decision.
- How does your current space fit your needs? Do you have too much space or too little?
- Consider the future. If your business grows in a few years, will you have enough space to grow into it? If not, you may want to consider buying space to account for future growth.
- Don’t buy for just yourself. One option is to buy more than you need; then you can lease the unused portion and help subsidize your monthly loan payments. This also allows you the freedom to grow into the whole space down the road.
Why do standard features matter in my decision?
Standard features are the elements that constitute what is included in a shell building. These vary greatly between developers.
COBE Development offers a generous standard features package in all of our developments. Including, but not limited to, heating and air conditioning units (HVAC), concrete slab, ceiling and exterior wall insulation, and electrical service. Many of these items are not standard in other developments and will increase your tenant improvement costs substantially.
Click here for our Standard Features
Why is a good parking ratio imperative?
No one enjoys spending time looking for a place to park. Clients appreciate good parking especially when it is close to the entrance of your office.
At COBE, we have designed the parking layout to provide them with just that. Our parking ratios are at a minimum of 5.5/1,000 SF unless deemed otherwise by city code. We understand that ample parking is important to you, your employees, and your clients. Covered parking stalls are also provided.
How important is the relationship that I will develop with the COBE Development Team?
See what some of our buyers have said about the importance of their relationship with us. We believe that the relationship we establish will make the entire process much easier. We will keep you informed at all times. If you have any questions or concerns we are only a phone call away.
The relationship you have with your developer is going to determine what kind experience you have. If you decide to go with someone who isn’t going to keep you informed you will find that this is going to be one of the worst experiences of your life. Knowing and trusting your developer is the key to smooth financing, design, and build out. We are determined to make this easy for you. We understand that you have busy lives; you don’t need to be doing this on your own.
Click here for a testimonial. |
