Optometrist.
Purchased his office condo near 67th Avenue and Thunderbird Road in January 2004.
Why did you buy an office condo instead of leasing space? "I wanted to have something tangible at the end of a finite period of time. I didn't want to continue paying rent and having nothing to show for it at the end of the day."
How has that decision benefited your business? "I believe it's been neutral; it hasn't really had a significant positive or negative impact on my business."
What has disappointed you about the process? "I've found several points of disappointment. One is that I don't have any control over other tenants/owners and thus little control over items such as parking. I own about 3 percent of the total office space here, so that's how much say I ultimately have.
"Also, my project was slow to sell out, which I fear has kept appreciation on my property well below the norm for commercial real estate over the past two years.
"If I could have done something differently, I would have investigated more opportunities in which I would have total control. For example, buying land to develop myself or a small office building. I made the decision that I thought was best at the time -- to buy the office condo -- but ended up letting more ultimately lucrative opportunities pass me by."
What advice would you give to another business owner considering buying an office condo? "A good commercial real estate agent is very important, as is allowing adequate time to consider options. I limited myself too narrowly geographically, which limited my choices.
"I would also encourage the prospective owner to make sure that the condo's location provides for adequate parking and that the signage is adequate for their needs. And realize that the build-out will be stressful, more expensive and take longer than anticipated, even with a good contractor."
Attorney, Gibson, Ferrin, & Riggs.
Purchased his office condo at Entrada Executive Plaza on Higley Road near the U.S. 60 in 2001.
Why did you buy an office condo instead of leasing space? "Buying an office condo makes all the sense in the world. It allows us stability and control over the facility, allowing us to plan for growth and control our own destiny. Even if the property does not appreciate -- and it already has -- we're still building equity. It gives us a way to plan for our retirements.
"It's the same principle as with buying a home versus renting. When you're renting, you're paying someone else's mortgage. ... In fact, we like owning our office condo so much that we bought a second building that we're closing on now. We'll be operating a side business out of that location."
How has the decision benefited your business? "The primary benefit has been the added stability that owning our office provides us. We control the terms. It's also been advantageous in terms of our clients' perceptions of us -- it adds another dimension of stability in their minds, too."
What disappointed you about the process? "First, let me say that the UTAZ Development folks are great; we could not have done this deal without (company President) Craig Willett. There are no downsides to owning an office condo that we've experienced.
"When we first bought the office, it was a strain on our immediate cash flow; that financial aspect of the process was difficult. But we've always had a long-term vision for our company, and we knew the purchase would pay off -- and it has."
What advice would you give to another business owner considering buying an office condo? "I think that owning an office condo is a great deal, a great opportunity. It offers tax advantages as well as the stability advantage I talked about. My advice would be to look beyond the company's immediate needs to allow for growth."
Active Lifestyle Medical.
Purchased his office condo at Ironwood Suites on 92nd Street and Shea Boulevard in early 2004.
Why did you buy an office condo instead of leasing space? "I can own for the same amount of money as leasing, but with owning, I build equity, too. Our location is wonderful, near the hospital, and the office has good resale potential. I own two office spaces; I use one of them and lease the other out."
How has that decision benefited your business? "Public perception of us has improved over when we were located in a strip mall. Certainly, the aesthetics are a lot better now that we own than when we were leasing. Patients are proud to refer other people to us. We also have a lot more exposure here."
What disappointed you about the process? "I've been very happy with the process. My only regret: not buying a larger space. I originally bought about 5,600 square feet of space. It's turned out so well, I regret not buying the whole building."
What advice would you give to another business owner considering buying an office condo? "An office condo is like any other piece of real estate; you have to consider the same factors in this case.
"Ask yourself, for example: Does the property serve my purpose? Is the location good? Will it be easy for people to find my business?
"I would caution a prospective buyer to make sure that the public has access to the business. Also, think about the resale value of the property. And find good contractors to customize your space exactly the way you want it to be customized."
Chief executive, Amendola Communications.
Bought her office condo at Ironwood Suites on 92nd and Shea about two years ago.
Why did you buy an office condo instead of leasing space? "When we decided to move from our home-based offices, we looked at Class A office space that was $22 to $25 a square foot to lease. We did the math and found that it just didn't make sense to rent.
"All you need to buy an office condo is a down payment, and you can own your office for the same monthly payment as you could lease one. The benefit, of course, is that at the end of the day you own that property."
How has that decision benefited your business? "We were able to customize the build-out to fit our needs. We bought bigger than we needed and initially rented out the extra space. We've now grown into the space. Our customers rave about how beautiful our office is; people are very impressed. What's more, our property has appreciated about 30 percent in the two years since we bought it."
What disappointed you about the process? "The downside is that now we've filled up the space. We may end up doubling up two people per office, or we could sell this office and build a new, larger one."
What advice would you give to another business owner considering buying an office condo? "Buying an office condo makes good business sense if you have the down payment. It's silly to pay rent every month when you could pay a mortgage and build up equity. Leasing, you're subject to rent increases, or to being put out if the landlord doesn't renew the lease. With an office condo, there's security in knowing that your office is yours.
"I would also advise prospective office condo buyers to think about the location, which is critical. Customers need to be able to get there, especially for drive-up businesses such as medical offices. I would also recommend using a top office condo developer to help every step of the way -- what Shea Commercial did for us.
"For example, Shea has vendor partners to help owners with the build-out. That aspect of the process -- the build-out -- was time-consuming, but it was certainly worth it."
Broker, Anchor Mortgage.
Purchased her office condo at theExecutive Villas at Dana Point near Baseline and Val Vista roads about four years ago.
Why did you buy an office condo instead of leasing space? "I bought the office condo once I realized that I could buy a larger space than I needed, lease out the unused space, and have my mortgage payment covered by my tenants -- or at least have the same monthly payment as when I was leasing. The other advantages include building equity and the tax write-off."
How has that decision benefited your business? "The office location is very convenient for me; I live close by. It's also a stable place for clients to come to."
What disappointed you about the process? "I wish that I had been more aware of the expenses involved in buying and owning an office condo. For example, association expenses, taxes and insurance."
What advice would you give to another business owner considering buying an office condo? "I would recommend that a prospective buyer learn what the associated costs will be, including the costs to build out the space. Basically, I recommend due diligence -- not going off of the emotion of ownership.
"Owning has been great for me, but it could be frustrating for a person not in a good equity position. I would research before buying, visit sites and talk to people who own office condos. Also, if you're planning to lease out excess space, think for a while about whether or not you want to be a landlord."