Should You Sell or Lease Your Office Building? What to Consider.

Choosing whether to sell or lease your office building can be a big decision. You need to think about different things like your property, the market, and your personal and business goals. We talked to Jacob Loveland, an Office Sales & Leasing Specialist at ELIFIN, to get his advice on what to consider when making this choice.

Sell vs. Lease Office Property

Occupancy Considerations

One of the first questions to ask yourself is whether you plan to continue occupying part of the building. Loveland advises, “If you’re still planning on occupying part of the building, you might want to retain ownership and lease out the other portion.” This approach allows you to maintain control of your operational base while generating rental income from the unused space. Additionally, if future business expansion is a possibility, leasing out the other side provides flexibility down the line. Leasing can also provide a steady income stream while preserving the asset’s value.

Deciding to Sell

If the building is purely an investment or no longer serves your needs, selling might be the most straightforward option. “If you own the building but don’t use it or acquired it as an investment, you’re probably looking to sell,” Loveland explains. 

The decision to sell hinges on your specific situation. Loveland points out that selling makes sense if you’ve outgrown the building or wish to relocate. “If you’ve outgrown the building or want to move to a different area and expand your portfolio, you might consider selling it,” he says.

Uncertainty about selling or leasing can be resolved by listing the property for both options. Loveland suggests, “If you’re uncertain, you can list the property for both sale and lease. You can lease it out and sell it as an investment, or sell it as a vacant property for owner occupants.”

Other Considerations

Market Conditions

Market Conditions should be taken into consideration when deciding whether to lease or sell your property. In areas with high vacancy rates, leasing might be more advantageous. “Given the high office vacancy rate in Baton Rouge, for example, I would lean towards leasing it out and then selling it as an investment,” Loveland recommends. This strategy can help you navigate challenging market conditions while positioning the property for future sale. “If you bought the building with a variable interest rate and your interest rates have skyrocketed, listing the property for both sale and lease offers flexibility in recovering from high-interest rates.”

Should You Sell or Lease Your Office Building?

The decision to sell or lease your office building depends on various factors including occupancy plans, investment goals, market conditions, and your personal circumstances. Your personal circumstances and goals also play a role. Loveland advises, “If you’re looking to retire and don’t want to manage the building, selling makes sense.” Whether you choose to lease, sell, or pursue both options, understanding your specific situation and market dynamics will help you achieve the best outcome for your commercial property investment.


Elifin Realty
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