Longmont , CO
(720) 600-9513
Longmont , CO
(720) 600-9513

What to Consider Before Investing in Office Buildings

Tag: Office Building

What to Consider Before Investing in Office Buildings

September 13, 2023

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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#longmontcommercialrealestate #commercialrealestatebroker #northerncoloradocommercialrealestate

Top Trends in Modern Office Building Space

October 11, 2022

Commercial real estate and the use of office buildings has dramatically changed in recent years. Coworking spaces, work-from-home options, and modern technology have created opportunities that the general workforce never had before. 

Overall, standard offices have transitioned to more inviting and collaborative environments. Below are a few of the top trends in modern office building design. 

Efficiency 

As with most newer construction and remodeling, office buildings are making sure to emphasize efficiency when creating unique spaces. Using durable and high-quality materials reduces repair and maintenance spending and cuts down on utility costs over time.

Collaboration

Cubicle walls separate many traditional office spaces at every turn, while newer designs provide space for collaboration. Employees now sit at smaller workstations within a larger open area. Forgoing the heavily divided space allows team members to meet and collaborate easily. 

Visually Appealing 

New office designs include modern furniture and interior elements, plenty of color, open concepts, and abundant natural light. Updated finishes and colors make for an energizing workspace, and the use of glass walls to separate offices and meeting spaces creates a bright environment.  

Built-In Technology

Down to the minor details, companies are designing their offices with plenty of built-in technology. Conveniently placed outlets, projectors and smartboards, and wireless phone charges are keys to creating a thoughtfully designed work area.

Recreation

Beverage stations, ping pong lounges, and nap rooms—Who would’ve thought these features would end up in office buildings? Unique recreation spaces have become increasingly necessary to recruit and keep top talent. 

Innovative Meeting Spaces

Conference rooms and large private offices are a thing of the past. Open concepts allow for team meetings with employees remaining at their workstations. Additionally, updated offices are more likely to feature smaller meeting hubs for a few employees to hold meetings or take private phone calls.

Looking for a New Office Space?

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.

Like, Share & Follow us on LinkedIn and Facebook.

#longmontcommercialrealestate #commercialrealestatebroker #northerncoloradocommercialrealestate

Commercial vs. Residential Real Estate Investing

August 16, 2022

Commercial vs. Residential Real Estate

Some real estate professionals have strong opinions on whether it’s best to invest in commercial or residential real estate. The truth is that your financial position and your goals will determine which investment is best for you. In the end, each strategy has its own pros and cons.

Your residential real estate investment could be a single-family home, condo, townhome, and anything up to a quadruplex. Commercial real estate is anything that has 5+ dwelling units, office buildings, retail space, hotels, etc. To decide which path is right for you, let’s look at some of the benefits of the two types of real estate investment.

Pros of Commercial Investment

While it may be tougher to get started due to higher costs, there are some great benefits of commercial real estate.

  • Well-Qualified Tenants: In residential properties, you typically work with families or groups of people as tenants who may not treat the property as you would. In commercial real estate (aside from apartment buildings), your tenants are well-qualified businesses that likely won’t create as much wear and tear on the property. 
  • Lease Terms: In commercial real estate, five to ten-year leases are common, which means there is significantly less turnover than in residential leases. Additionally, triple net leases are often used, meaning the tenant handles all property expenses directly, significantly reducing the property owner’s maintenance costs.
  • Appreciation: In residential real estate, the value of a home is heavily dependent on comparable homes in the area. For commercial properties, the building’s value is almost purely based on its cashflow potential and thus can appreciate very well over time without being affected by the surrounding structures.
  • Return on Investment: The larger scale of commercial investment properties typically correlates to a greater return on investment. While it may require more cash to begin investing, the cash flows almost always beat residential properties. 

Pros of Residential Investment

There are also many pros to residential real estate that may make it a better fit for some. 

  • Large Tenant Pool: As opposed to working primarily with businesses, residential real estate has a large pool of tenants and buyers. A larger tenant pool ensures that vacancy rates stay low and cash flow is consistent. 
  • Starting Cost: Residential real estate is often much more affordable than commercial properties. The lower starting cost makes it easier for investors to start in the industry. 
  • Recessions: Businesses are always quickly impacted by an economic downturn which inevitably affects their landlord. Companies may go out of business or look to cut down on costs, and suddenly commercial properties are hard to market. Residential real estate, however, typically stands strong, no matter the state of the economy, as people always need a place to live. 
  • Fewer Rules: Commercial real estate comes with many zoning laws, regulations, and paperwork. Because residential real estate doesn’t involve renting to businesses and is typically smaller scale, there are significantly fewer rules to follow.

What is Best for You?

If you are curious about what investing strategy might be best for you, it’s important to connect with a real estate professional to discuss your options. Please contact Steve Longenecker at WeBrokerCORealEstate or 720-600-9513 if you have questions about the commercial real estate market in Longmont, CO, and our neighboring communities.

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What to Consider Before Moving Office Spaces

July 5, 2022

Time to Move

Have you outgrown your current office space and decided it’s time to move? Has the global pandemic changed your business’s commercial real estate needs? Are you looking for a more updated and functional building?

There can be many reasons for moving to a new office space. You should consider a few things before deciding when and where to make your move.

Tips for a Smooth Transition

  • Know What You Are Looking For: Before you start looking for new commercial property, make a list of must-haves. Not every office space will provide the same functionality, so it’s important to know what you need.
  • Don’t be Overly Picky: Keeping your list of must-haves in mind, you shouldn’t be afraid to compromise on a few less essential items. Keeping an open mind will help you land a new space that fits your needs without spending years looking for an office that checks every single box.
  • Find a Moving Company: Finding movers who care for your company’s possessions the way you would can seem impossible. Look for recommendations from other business owners or your trusted real estate professionals.
  • Check Your Dimensions: No matter the size of your office, you have likely acquired pieces of furniture, equipment, and decorations. Make sure that all the necessary items will fit in your new space before wasting time and energy moving them.
  • Celebrate: Once you have found your perfect new office space and settle in, remember to celebrate! Real estate shopping and moving are not always easy, so remember to reward yourself and your employees. 

Rely on Expertise

While moving office spaces may be sometimes necessary, it can feel daunting. Make sure you partner with a real estate professional with the expertise to make the transition seamless. 

Please contact Steve at WeBrokerCORealEstate or 720-600-9513 if you have any questions about the commercial real estate market in Longmont, CO and our neighboring communities.

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Has COVID-19 Made Office Buildings Obsolete?

April 19, 2022

Has COVID-19 Made Office Buildings Obsolete? COVID-19 has profoundly changed many aspects of our society, and commercial real estate is still feeling the effects.  

The COVID Real Estate Recession

All activity in the commercial and residential real estate markets temporarily paused at the start of the first wave of the virus. The impact, however, has been far longer lasting in the office sector. Property owners are still trying to attract tenants, who had quickly realized they could work entirely from home, back to their original office spaces.

Redesigning Traditional Office Spaces

During the pandemic, employees learned they were just as efficient working from the comfort of their own home and building owners were left scrambling to find ways to make the office more appealing than staying in your PJs. Today, many landlords are infusing capital into their properties to elevate outdated finishes and create desirable amenities such as gyms, outdoor terraces and patios, and larger kitchens with trendy food and drink options.

Property Managers Challenged with Vaccination Mandates

On top of a changing physical environment and new leasing structures, property managers and owners are tasked with enforcing vaccine mandates. Or are they? Navigating legal issues, personal rights, and labor union demands when it comes to the push for immunization has become an animal of its own and a new challenge for commercial real estate owners.

Returning to the Office

Working from home can seem ideal, but employees are beginning to understand that isolation and Zoom meetings have challenges in their own right. Office buildings everywhere are coming back to life; they just might look slightly different than they did two years ago.

Contact Steve at WeBrokerCORealEstate or 720-600-9513 to discuss any of your commercial real estate needs in Longmont, CO and our neighboring communities.

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