Help! Better to have a vacant building or a few tenants with 50% vacancy?

[Margot Weatherford]

Hello,

I’m reaching out regarding a unique listing: an 11,000 sq ft historic building located just one hour north of Atlanta in North Georgia. The property features two 1,400 sq ft suites on the main level (one currently leased) and over 3,000 sq ft on the upper level, with 750 sq ft already occupied, 3 small office spaces (+/- 250 sq ft each), and a basement tenant with 1,400 sq ft of storage space.

The building generates $6,000 in monthly gross income from its five tenants, but with full occupancy and market-rate rents, it has the potential to bring in $10,000+ per month.

Given its historical significance, stunning architectural details, and location, I’m curious about your opinion: Would this property be more marketable for sale with or without the current tenants?

Additionally, the owner is considering design plans to convert part of the upstairs into three apartments, adding further value and flexibility.

I’d love to hear your thoughts.