New to investing should I even consider this commercial office?

Question

There is a class A office condo for sale in a great area, it is part of a 9 unit building, all of the offices are occupied with layers, architects, dr office, insurance agency's. The particular unit I'm looking at is occupied by an attorney, it is 2000sq ft listed at $240,000, renting at $3300 month, it does have a regime fee of $500 month for maintenance.

Would love to hear some thoughts on how to dig further into this property?

Thanks

Would love to hear some thoughts on how to dig further into this property?

Thanks

Joel Owens · Answer

I stay away from condo's. I want control of my asset.

I own my office now. Luckily fees are only about 150 a month. 500 a month starts to get steep. I got a great deal on it for 1,100 sq ft for about 72,000 and it houses my full time office worker.

You really need to look at the board and how many times it has changed over in recent years. Also look at the annual financial report to see if they are reporting a profit or a running loss for the HOA.

If this building is older plan on special assessments or monthly dues rising at a fast clip to cover ongoing repairs needed. Attorneys for tenants can be a pain as they work the system on landlords sometimes.

This would be a pass for me but I am not big on office anyways. The tenant can pull up a truck and move some desks and chairs out in the middle of the night and be gone. Other asset classes it's much harder to relocate giving you more of a buffer.

Mark Creason · Answer

It is an office condo. Nothing unusual there. See them all the time. Monthly fee covers what expenses?

Mark

Skip Gilliam · Answer

I'm just starting out myself but we have a few listings in this area like this.

David Kenny · Answer

this is interesting. Not trying to hijack your thread, but you are looking at a particular unit within a larger commercial building? I've never seen this (in my limited time learning about real estate). Typically commercial owners own the entire buidling no?

New to investing should I even consider this commercial office?

New to investing should I even consider this commercial office?

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