Business owners are always looking to increase profits and space. While they know that the option of buying rather than renting is a better investment because it will save them money later on, it can be difficult finding an affordable place.

This is especially true in dense business areas like New York City. However, the concept of commercial condominiums, which are like residential condominiums where people own units of a building, is a new innovation within recent years.

Commercial condominiums offer a distinct combination of what owners need in space, savings and control.

"In addition to cost savings and building equity, the ability to control the building operations proves valuable," says Eric Brecher, a senior associate at William B. May Commercial who specializes in office space.

Brecher has recently worked with creative and graphic design companies Olive 1:1 & birsel + seek, and Axis360. Some of the benefits over paying rent include paying principal and interest instead.

President of William B. May Commcercial, George Donohue adds, "With interest rates at a 35-year low, it is wise for a businesses to take advantage of opportunities the market creates. We are seeing interest rates as low as 6%--a large factor in deciding whether to choose a commercial condo or a rental."

For a small company, it is difficult to buy an entire building and renting can become expensive over time.

Owners of commercial condominium units can enjoy tax advantages on the part or parts of the property they do own. Tenants are not usually able to claim deductions for property taxes, repairs and depreciation like those who have commercial condos can.

Owners also have the freedom to redesign the space to their own tastes and needs.

The flexibility commercial condominiums have extremely appealing, especially when they can be attached to residential condominiums for mixed-use opportunities.

Brecher explains, "Growing companies can always purchase a larger space and sublease portions until it is needed. This strategy works well in markets that are tightening; which we are beginning to see in New York." Commercial condominiums literally become what you make of it.

Growing business need to allocute a large amount of time into finding the best location and fit for the company.

Experienced real estate firms, like William B. May Commerical offer a commited seach for the ideal office space.

Eric Brecher has both a legal background as a real estate attorney and time spent on Wall Street, creating "a combination of skills that facilitate working with clients.

"I have a better focus on what they need. William B. May Commercial is also smaller in size compared to other firms, so we are able to give more attention." Donohue states, "Our associates have varied backgrounds that allow us to find the best fit for our clients. Past experiences help us to think 'outside the box' and imagine novel solutions."

Brecher along with fellow associate Eliane Abramoff, currently represent 321 Broadway exclusively, which has the entire 5,200 square foot 5th floor available.

It is located between Canal Street and Chambers Street. Donohue advises, "This condominium is only $1,600,000 or $320 per square foot.

"If a company leased this space for $32 per square feet for 10 years they would pay the same $1.6M over time. However, at the end of the lease, they would own nothing."

COPYRIGHT 2005 Hagedorn Publication
COPYRIGHT 2005 Gale Group