Industrial condos have attracted fervent investor attention for the last three or four years. Low interest rates and investors seeking alternatives to the stock market are other reasons behind the latest real estate craze, say industry experts.

Industrial condos are an option for small business owners who want to own their own office, but lack the time and money to build it themselves. The greatest advantage, say experts, is the ability for a small business owner to own smaller space, ranging from 1,500-3,000 square feet.

Other benefits include the fact that the buyer builds up equity and can get tax write-offs for depreciation and interest. Another advantage is the fact that a business condo association maintains the building and landscaping, while the unit owners simply maintain their own interior spaces.

Low rates generate high interest

What's driving the growing demand is the fact that interest rates are hovering at about 5.15-5.7 percent for a 10-year fixed office warehouse mortgage. That makes the cost of buying an industrial condo less expensive than leasing, say industry experts.

For example, based on a 15-year mortgage at an interest rate of 6.5 percent, a monthly amortized mortgage payment on a $200,000 industrial condo comes out to $2,101. Leasing the same space would cost about $2,200 a month. Thus, the buyer saves about $100 monthly - and in 15 years, will completely own the property.

The latest architectural designs and upscale finishes for industrial condos are as attractive as those found in new residential and office condos in the area.

There is such a development on the drawing board for Port Orchard, slated for the intersection of Tremont Street and Pottery Avenue. A rezone application has been submitted to the city, and plans are currently moving forward. The only delay is waiting for the City of Port Orchard to determine the exact configuration of the widening of Tremont Street and how much land from the site of the proposed development will be appropriated under Eminent Domain proceedings.