Bedrock’s John Savard recently had the opportunity to chat with on of Calgary’s most prolific business writers, Mario Toneguzzi, about a story he was working on regarding Calgary’s office condo scene. Below is an excerpt from the story, Read the Full Article.
“I start the conversation with my client’s growth plans,” he said. “If they tell me they will most likely be the same square footage in seven years, then I highly recommend purchasing an office condo. It is at the seven-year point that the mortgage paydown is substantial enough – assuming only a minimal asset appreciation – that your return on investment is greater than paying rent.
“If my client’s seven-year plan has it growing its square footage, then a purchase may not be a wise choice. If my client outgrows its condo before the seven-year point, then it has to find new space and put the condo on the leasing or for sale market.”