Office Building Investment Considerations

By: Jacquelyn Donner

Many people when they look at an office building don't even consider looking at the whole building in and of itself. Why? Because many people feel that office-building tenants take much better care of the spaces that they occupy versus say people that occupy apartments. Nothing could be further than the truth. Make sure that you inspect the entire property at least one time before closing, preferably twice. Many times between the dates that you make an offer on the property and the date that it closes is usually 90-120 days or more. You want to make sure nothing has changed in those 90-120 days. I would encourage you to not only inspect prior to closing, but to inspect the whole property prior to closing.

Don't waste your time and don't provide training for some loan officer or bank that really has never done this before and has no real business being involved in this kind of investment. Make sure you ask around and find out who the top lenders are for office buildings in your market and that's whom you'd want to go talk to. One of the things you need to consider when buying a property is how many tenants are in the property. In other words, diversification. Let me put it to you this way: If you had a 10,000 square foot office building with 15 tenants, if one, two, or even three of those tenants moves out, it's probably not going to affect you that much. However, if you have the same size of building with one tenant and that one tenant moved out, it could affect you, drastically. So, looking for office buildings, but looking for office buildings with multiple tenants is more than likely the most advantageous way to go because it definitely lowers your risk.

I've talked about this in other sections and will continue to do so. You've got to work with someone who knows what they're doing. CCIM and SIOR are good people to call and talk to. However, you want to make sure you ask around in your marketplace, make plenty of phone calls, do plenty of inquiries as far as asking, "Who would be the go-to guy in the marketplace for working with me to buy an office building?" You will get an answer and the name that you hear more than one time over and over again will tell you that would be the person you need to contact.

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commerical real estate Special offer to help you make it in the commercial real estate world right now.www.commercialprofitblueprint.com Jacquelyn Donner

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