Looking at buying a small office building to house one of my employees for data management.
Building built in the 80's.
7 spaces about 7,000 sq ft in size one story.
Owner has owned for years and just replaced roof, toilets, etc.
Tenants on gross leases and only pay utilities. They are month to month mom and pop but all six have been there for 10 to 15 years.
Looking on gross leases for office buildings what your average expenses run off of gross expected rents??
I mainly focus on apartment buildings and retail properties for triple net leases and do not look at as much gross leases and office. This is close to where Iive so I can keep an eye on the employee and property.
Joel, I also operate mostly in retail properties, so take this with a grain of salt. My understanding is that operating expenses can average about 40% of gross income on office buildings. Like I said, I'm not in that space often, but what I've heard at least once or twice. Hopefully others can chime in.
Hi Joel. Did you make a decision on this property? There's a building I'm interested in here with identical specs but it's vacant so would require some build out.
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