Why Is Real Estate Joint Venture and Leasing Becoming Common in the Modern Marketby Paul Wright Tax Accountant Toronto - A Simple Checklist for Ch
Companies with different business interests are trying to expand. For this purpose, there is need of space. In many cases, it is quite difficult to acquire a property on which the offices can be constructed. It may not be feasible from business point of view. Varied reasons exist for companies to come up with the idea of real estate joint venture with real estate development companies. Even, some enterprises go into partnership with real estate investment companies. By doing so, they surely stand to gain a lot of advantages in their project. Such projects are also getting professionally managed by specific companies in the real estate business.
· Leasing and renting far better financially than outright purchases
To save on the huge expenses due to outright buying of properties, the concept of leasing in businesses is quite common. Many of the top notch companies all across the world are relying on this type of lease. Under the terms of such leasing, companies pay rent on the land or building, but are free to run their business. In this manner, they save a lot of finances which otherwise would have gone into buying of properties. But, in such terms, money saved can be diverted towards the growth of the business. It works great for many businesses therefore not having a permanent property of their own and instead leasing with joint venture real estate investors. Since a lot of brands and well known enterprises are going this way, it has become a much talked about topic.
· Planning construction in accordance with renting business profile
Going by the trend of leasing properties, rather than buying these, the build to suit commercial real estate is also getting attention. This kind of real estate is one which is owned and developed by an independent person or agency. Then the construction is carried out for a particular organisation’s need. In a way, this is customised for the tenant company, which might not be suited for the organisational structure of another. Agreements are drawn in favour of such real estate joint venture. There are some real estate investment companies, who put in money for the projects and have their share. Financially, such projects are beneficial for many companies due to the implications in the long run.
· Operating with minimum hassles especially about real estate and constructionHassles involved in the acquisition of properties and construction of buildings are not found in the build to suit commercial real estate. This is because the companies are handed over the site after complete specifications are built as per the agreements. Real estate development companies are usually involved in such projects. The concerned business units are also satisfied as the plan has been rightly executed for their needs. In these types of deals, all the parties involved are in the beneficial side. The joint venture real estate investors get their returns handsomely. Also the business enterprises have their savings to pump in more for improved profile. For all these reasons, the leasing and renting of properties has escalated in the modern day real estate market, especially for commercial properties.
Created on Jun 8th 2018 01:47. Viewed 93 times.