Investing in Office Buildings
If you are pondering a commercial real estate investment, office buildings are likely on your radar. If you’re already invested in residential real estate and other types of commercial property, office buildings can be a unique way to diversify. They can provide cash flow opportunities, tax benefits, and long-term appreciation.
When people think of office space, some immediately go to skyscrapers in downtown Denver. Office space, however, can be acquired on a much smaller scale and attract various tenants aside from corporate giants.
If it seems like office space would be a great addition to your portfolio, there are a few things you should consider before you take the leap.
What to Consider
Before investing in an office building, here is what you should consider:
- Location: As with any piece of real estate, location is critical. Choose a site that will fit your potential renters and their businesses.
- Quality: Not all office spaces are created equal. Consider your budget and try to find the building with the highest quality structure, mechanical systems, and finishes.
- Size: The amount of property you are willing to manage and the type of tenant you hope to attract will dictate the building size you choose.
- Layout: Does the building provide an open concept or a walled office setup? Reconfiguring layouts can take significant time and money, so be sure the space is usable for your potential tenants.
- Tenants: The type of tenants you want will significantly impact the building you invest in. Every kind of tenant requires a different location, layout, and amenities.
- Leases: Whether there are existing leases or if you will be acquiring all new tenants, it’s essential to consider what types of leases you prefer.
The Real Estate Cycle
As we all know, real estate is cyclical. Commercial buildings, including office space, are no different. A good investment stands the test of time and is versatile through all cycles. If you are considering investing in commercial office space, consult an experienced commercial real estate broker to be sure you make the right investment.
Please contact Steve Longenecker at WeBrokerCORealEstate or 720-600-9513 regarding any commercial real estate needs in Longmont, CO, and our neighboring communities.
We give out $250 gift cards for referrals that become our real estate clients.
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