Is leasing preferably to owning a building we already own and how do we decide?
I work for a non-profit and we own a building that we build in 1957. (I was 3 years old). The board is entertaining selling the building and leasing for financial reasons, which include eliminating administrative costs. We have the need for 6 spaces for employees. (Our building is larger than we need), however, I would like to have a conference room to avoid constantly looking for meeting places for several groups that meet here.
We know that the cost of running the building between 30K to 40K (the high end is only if something untoward happens like a mold remediation or a new AC unit. I do know that the next major “thing” is probably a new roof because it is 20 years old. That will cost about $25,000.
Rents in the outskirts for the building I would want range about $2000-$2500 a month (Modified Gross). There are others that are not desirable ( triple net)
What should I be looking at to make the determination? Realtors just want to sell property and builder and architects want to do that work. No solid answers. The other driving force is investing the money in the bank for the future.
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