We represented a Credit Union looking for a retail space to lease in south King County. We found the ideal location and in the process of negotiating a lease for a portion of the building, converted the landlord to the concept of selling the entire structure. The cost of the acquisition for the credit union was so cheap, based upon their cost of funds, that it was actually cheaper to buy the entire building rather than lease a portion of it.
This raises the issue of meeting the needs of a client looking for a small retail or office space. We generally recommend that the client confer with his tax advisor, but whenever possible, the long term stability of ownership as a function of overhead, it is better to buy. SBA (Small Business Administration) financing can accommodate as much as 90% of the acquisition cost in some circumstances. Further, if done properly, the cost of tenant improvements paid by the buyer can be credited against the down payment requirement. We heartily recommend that our clients act the same as Amazon and other major office clients and look at buying as an alternative to leasing.
