If your company has cash reserves and a clear plan for the future, purchasing commercial real estate for your operation could be beneficial.
Buying property shields you from rent increases, and provides greater payment stability. Plus, as you build equity in the property, it becomes a valuable asset to leverage for future growth. Here are other tips to consider:
- Ensure the location is convenient for your customers and fits your business operations.
- Consider subleasing part of the property for rental income if you are purchasing a larger space with room for growth.
Work with your bank early on. Your banker is a resource to help you determine if owning a property makes sense for you.
- He/she will assist you with planning for the down payment requirement, adequate reserves, cash flow considerations, and financing options.
To learn how CPB can go beyond for you, visit centralpacificbank.com.
Assistant Vice President,
Senior Business Banking Officer
Central Pacific Bank