Rising employment ratesSmall Business (SME) investing in commercial real estate deals. are one of the main drivers of the commercial real estate sector. As businesses hire more workers, they will require additional office space and seek to further expand their operations.

Increased confidence in the economy is one of the reasons why small business owners may find purchasing commercial property for their company to be a worthwhile investment. The sentiment isn’t unfounded – the national unemployment rate in January was 7.9 percent, down from 8.3 percent a year ago. A survey by the National Federation of Independent Business found that small business hiring edged up slightly in January. Citing the survey, The Dayton Beach News Journal reported that 11 percent of entrepreneurs increased payroll in January, while 80 percent saw no change in employment levels.

As they look to expand, owners need to weigh the option of owning their own building against renting. Much of this decision depends on future projections for their growth potential and industry, but Fox Business News stated that more entrepreneurs are taking advantage of favorable conditions to buy property.

A good time to buy?

Real estate values are still lower than their peak from 2007 and interest rates are at historic lows, making it an affordable time to buy. Fox news noted that developing firms could benefit from securing owner-occupied properties and renting out the remaining offices to other small businesses. This gives the company an alternative source of income that can offset the mortgage and maintenance costs.

Owners who choose to take this route should consider building management software to help them oversee their property and effectively manage their buildings. While such an investment can deter small business owners, this solution enables owners to monitor maintenance costs and boost efficiency by providing real-time visibility into operations.

For businesses that are experiencing strong growth and can secure the proper financing, owning their own building may make more financial sense. In most cases, the best step to preserve the value of that investment and maintain full occupancy is finding the right property and tenant management tools to fit their operations.