When we started sales at the IRONWORKS commercial real estate development, we were confident there was a strong market for our new stacked multi-use spaces. Our research showed that many businesses were interested in investing in a new type of flex-space with office, warehouse, and/or industrial configurations all under one roof. The attraction, for the Ironworks buyer, is the perfect combination of value, modern amenities, great location, and pride of ownership.
Value is a huge decision driver for IRONWORKS buyers. Many buyers are getting tired of paying high monthly rental or lease fees. In Vancouver, these high rental and lease costs are often the equivalent of a monthly mortgage payment, or more. Some renters are just a down payment away from being able to own.
Scarcity of commercial rental spaces is another factor influencing IRONWORKS owners to invest in Vancouver commercial real estate. Industrial rental vacancy rates are at record lows in Metro Vancouver: 2.4% in Q4 2016* and 2.2% in Q1 of 2017**. Office space rental opportunities are also scarce.
5 Reasons You Should Consider Owning an IRONWORKS Space
Here is a summary of the top 5 reasons it might make sense for your business to buy office, warehouse or industrial space at IRONWORKS.
1. Buying is an investment that literally pays you! Rather than throwing away your hard-earned money on rent or lease payments, your investment builds equity. That equity becomes money in the bank – whether you sell down the road, or use the equity as collateral to re-invest in your business. Commercial real estate is not likely to get any less expensive in Vancouver, so now is the time to buy in.
2. Your business is growing and it’s time for a larger, more useful space. Moving to another Vancouver industrial rental or office lease is costly and the space you wind up in is often a compromise at best. In the end, you might feel you are paying a lot of money for something that’s less than an ideal fit and doesn’t provide an environment that brings out the best in you or your team. Owning the right space makes more sense than leasing the wrong space.
3. Mortgage costs are steady and predictable over the term of the mortgage. With ownership, you know exactly what you’ll pay each month, and for how many years. While mortgage rates fluctuate over time, they are at historic lows and have been stable for years. Future rental and lease payments are much greater unknowns. At renewal time, you are essentially at the mercy of your landlord and/or what the current market will bear.
When you own commercial real estate in Vancouver, it’s easier to factor known monthly mortgage costs into a budget or financial projection. Long term, budget line items for lease expenses are “best guesses” and may lead to inaccurate projections. Because monthly rental or lease payments are a significant percentage of fixed monthly expenses, cost guesses can wildly skew budget forecasts and put the growth and stability of your business in jeopardy.
“Understanding a company’s bottom line is fundamental for planning, especially with tight margin small businesses. Certainty has never been better with the low interest rate climate and ubiquitous access to capital”.
– Matt MacLean, Senior Vice President, Office Leasing, Cushman & Wakefield
4. Take pride in ownership and have more control over your business. Business owners have the opportunity to invest in their future – for their business, themselves and their employees. Buying commercial real estate is a milestone in an owner’s business development that marks an important point in business growth. Property ownership becomes more than a financial investment – it’s a personal commitment to succeed.
The decision to buy a Vancouver commercial property, warehouse and/or industrial space is a personal investment that puts you in control of your own destiny and enables you to plan and make decisions that ensure your dreams are realized. As an owner, you can also take pride in contributing to the local and neighbourhood economy.
5. You are buying new. IRONWORKS is a new Vancouver commercial property built with the latest, industry-proven techniques, conveniences and efficiencies. The property you purchase can become the perfect space for your business; allowing you the opportunity to make decisions based on the needs of your customers, employees and partners.
When you rent or lease in Vancouver, you often just get what you get, and don’t have options in terms of amenities, comfort and conveniences. On top of that, it’s not uncommon to end up with unexpected maintenance headaches trying to keep these bare older spaces functioning at even a basic level. This can often be limiting to the growth and development of your business.
“One of the great benefits of buying into a new project in this day and age is the level of sophistication of the builders, and the product they deliver. Better materials, improved efficiencies, and quality of construction means the reduction or elimination of many of the pitfalls of existing buildings, in particular older style two story structures we commonly see in East Vancouver.”
– Chris Newton, Vice President Commercial Sales and Leasing, Cushman & Wakefield
Need More Reasons to Buy?
If you’d like to discuss what it means to own at IRONWORKS, a member of our team would be happy to discuss options and pricing. Please get in touch with us to start the conversation towards investing in your future with IRONWORKS!
* CBRE Limited www.cbre.ca Q4 2016 Metro Vancouver Industrial Team Marketview
** CBRE Limited www.cbre.ca Q1 2017 Metro Vancouver Industrial Marketview