Office Condominiums At 26717 Westheimer Pkwy.

[therepguy]

Why is there such an absent of office condominium's in Houston, like the ones you finds in Dallas?

[RedScare]

My guess would be their poor investment qualities. Rent is tax deductible. If your business grows (or shrinks), you can increase your rental space (or give some back). If your business goes under, you can terminate the lease. If your business moves to another part of town, you can lease space closer to where you need it. None of these advantages apply to an office condo. An office condo requires a big down payment that might be put to better use buying inventory or needed equipment. You purchase a set square footage, so if you need to expand or move, you are stuck in your too small condo. If you buy large for future expansion, you are stuck with paying for empty space for years until (maybe) you need it.

Simply put, office condos are a horrible use of capital for most small businesses. They may seem like a good idea for the developer who builds them, but they handcuff the small business owner who buys them. A small business owner needs the flexibility that a lease provides, not the concrete that an office mortgage provides. If you want to own an office building, buy big enough to lease out the unused space. But, beware, this also has its drawbacks.