Owning a home is usually a cheaper option than renting and now it seems that many businesses are finding that owning an office may work out cheaper than leasing.
A report from Colliers International found that in Toronto there is a growing trend towards ‘office condos’ as lease rates increase while
mortgage rates are falling. Businesses also see the value of owing an appreciating asset. Figures from 2015 show that 74 per cent of office condos were owned by end users, often professional services firms.
“Owning office space offers the advantages of having a fixed and clear cost in the wake of major increases in leasing rates, full control over the design taste and feel of your environment, the prospects of capital gain, and no longer having to worry about the lack of flexibility that is usually coupled with a leasing contract,” says Scott Chandler, Colliers International’s Senior Vice President, Capital Markets.
In Vancouver there is a greater proportion of office condos owned by investors rather than end users. From 2010 to 2014 investor-owned office condos surged from 31 per cent to 83 per cent.
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