South Florida office tenants are increasingly buying instead of renting, in an effort to avoid rental rate increases amid a dearth of recent construction, real estate agents told the Sun-Sentinel.
Small businesses are scooping up office condominiums at Sanctuary Centre, a 187,000-square-foot complex at 4800 North Federal Highway in Boca Raton, and the Exchange, a six-building property at 115 Northeast Third Avenue in Fort Lauderdale, according to George Sacks of Commercial Florida Realty Services.
“Rather than just throwing money away on rent, we’re building equity,” Mauri Peyton of law firm PeytonBolin in Tamarac told the Sun-Sentinel. “We don’t have to worry about a landlord or losing our build-out money when we leave.”
PeytonBolin is among several firms seeking to buy now before mortgage rates continue to rise. Larger firms usually rent because their space needs tend to fluctuate more, the newspaper reported. [Sun-Sentinel] — Mark Maurer