Why Nonprofits are Choosing Office Condos

For nonprofit organizations looking to maximize their impact, owning real estate can be a powerful move, especially given their tax-exempt status. However, the scale and ongoing costs of owning an entire building can be daunting. Office condominiums present a compelling alternative, offering a sweet spot of ownership benefits without the overwhelming burden. In Manhattan, where approximately 3% of the office market comprises condos, a growing number of nonprofits are recognizing the advantages.

➡️ For more on how nonprofits can reduce occupancy costs, read Two Strategies for Nonprofits to Reduce Occupancy Costs.

Here are five key reasons why your nonprofit should consider purchasing an office condo:

1. Lower Initial and Ongoing Costs: Acquiring and maintaining a condo unit can be significantly more affordable and predictable than owning an entire building. This frees up valuable resources to directly support your mission.
2. Eliminate Real Estate Tax Burden: As a tax-exempt organization, owning a condo allows you to avoid paying real estate taxes – a cost that is invariably factored into lease payments and subject to annual increases.
   ➡️ To learn more about how nonprofits can benefit from real estate tax exemptions, check out The 30-Year Leasehold Condo NYC. What you need to know..
3. Access Favorable Financing: Tax-exempt bond financing opens doors to high loan-to-value and low-interest mortgages, making ownership more accessible.
4. Streamlined Fundraising: A one-time capital campaign for a purchase can often be more effective than repeated annual appeals to cover escalating rent costs.
5. Long-Term Financial Predictability: Condo ownership provides stability and control over long-term expenses, shielding your organization from the volatility and potential rapid increases of the leasing market.
   ➡️ For broader considerations when nonprofits are leasing or buying office space, see Things for Nonprofits to Consider when Leasing Office Space.

Many prominent nonprofits have already embraced this strategy, including UNICEF, Smile Train, Jewish Forward, Lower Manhattan Cultural Council, The Fencers Club, Doctors Without Borders, Big Brothers & Big Sisters, Fedcap, and The Fresh Air Fund.

Considering an office condo for your nonprofit?
Contact Paul Walker at 212-984-7117 or paul.walker@cbre.com for information on available commercial condos.