ARIZONA’S PREMIER HOME BUILDER

Commercial

Developer Projects

We work with owners, investors and developers looking to add onto existing properties or ones looking to build new.

We work with designers and architects to deliver the project on time and on budget. We focus on proper processes to maintain efficiencies in order to give owners confidence that we will deliver the project as they expected. Give us a call to discuss your next project.

Multifamily Apartment Complexes

Are you an investor looking at buying large Multi-Family properties, but just cant find one that works?

Give us a call, we work with investors to build great properties at affordable prices in order to ensure profitability right out the gate.

Building an Office Verses Renting an Office

The current real estate market in the Phoenix Arizona Valley is making it more difficult for businesses to find an affordable office space to rent that will provide them everything they might need. More businesses are turning to the idea of building their own space. This way each given business can create the space that will truly work for their business. Gone are the days trying to create a space work for you with you can create the space that will be exactly what you want.

When breaking down the costs of an office space build verses renting, look at the following numbers. Office space can go from $8/sqft/year all the way up to $20 plus. There are times when you can find something that will work for you, but for most businesses you are having to do a large tenant improvement in order to get the space to work for your business. Tenant improvements can average around $35 per square foot. This has to get paid. So this either comes out of the tenant up front or it comes out of the tenant by raising their rent and or doing a longer term lease. A standard lease will be anywhere from 3-5 years for a space.

Lets put these numbers together on a 3000 sqft building.

3 Years

3yrs @ $14/sqft = ($42,000*3) = $126,000

5 Years

5yrs @ $14/sqft = (42,000*5) = $210,000

* If you have a tenant improvement of $35/sqft, that would be $105,000 on a 3000 sqft unit. You can absolutely spend less and you can spend more. It all depends on the space you find and what you are able to live with or what you are unable to live with.

Total costs:

$126,000 + $105,000 = $231,000

Total costs:

$210,000 + $105,000 = $315,000

If you were looking at building an office for yourself, lets do some numbers.

Land (.5 acres)

$150,000

3000 sqft unit around $165/sqft build

This price can be higher and can be a little lower depending on design, location and finishes.

$495,000

Other Costs:

Architectural $2-$6/sqft

$10,000

Permits

$20,000

Landscaping/Roads-Parking lot/Drainage/Dirt-work etc

$100,000

Totals:

Total Costs per example:

$775,000

Down payment needed:

20%-$155,000

Owe after down payment:

$620,000

Monthly payment with a 5.5% interest rate, 25 year term:

$4,759.18/month

Own Versus Rent

Own building and pay $4,759.18/month and own the building and have it be exactly what you want. Once it is paid off you own the building and have something to show for your work.

Rent you could spend month for the next 25 years and never get that money back. Our suggestion is take the money you would have spend on the rental to rent and do your TI and apply that money towards your down payment and own your own building.

Disclaimer- The numbers used are not exact for every project and will very depending on many different variables. Please give us a call today to discuss your specific project!