SBAM member owner-to-owner profile: Andy Gutman, president of the Farbman Group
September 26, 2018
Own or lease your real estate? Not an easy question to answer in today’s small business financial and tax environment. “A lot of it really depends on the needs, flexibility and desires of a company,” says Andy Gutman, president of the Farbman Group in Southfield. The Farbman Group is a full-service real estate organization that manages more than 25 million square feet of office, retail, multi-family and industrial space across the country. They are VIP Members of SBAM.
“We spend a lot of time saying what’s your one year, five year, 10 year plan for your business, and then we try to tailor that decision making to what those needs are,” Andy says. “In an economy like this one, it’s a really strong economy, and market prices are at the highest level that we’ve seen in years. And so it may not be the best time to buy even though buying might make sense from a short term decision perspective. Maybe waiting until the market is not at the height in order to buy might make more sense.”
Having a good idea of your business plans and needs can help guide your decision. If you’re expecting fast growth and expansion, it may make more sense to lease space in a complex that allows for your growth.
“We like being that partner to our friends in the small business community,” Andy says. “(Real estate) is a major line item on your balance sheet, it’s one of your largest costs, it’s a major line item for you. It’s something that has to be thought through thoroughly. I really do think many small businesses don’t realize the importance of having a professional by your side to give you that advice that’s needed and help you through those initial stages.”
Hear more of Andy Gutman’s insights on on the commercial real estate business by listening to his interview with Michael Rogers on the Small Business Weekly Podcast (link to this episode).