Looking at purchasing a unit vs renting it

[Brandon Cox]

Decent office space is hard to find in my area - mainland side of Hilton Head Island and it's Bluffton or Okatie.  I've been watching for a few months to try and find a space to rent.   I found a brand new project and it's about 1450 SF and it's a modern building with parking with a shared elevator, stairs, and lobby.  The building is one of 3 buildings and each one is approximately 10,000 SF each.

These are some prices - 38/ft NNN with NNN estimated at $9/SF. Price to buy is $525/FT.

Do these numbers make sense on buying?  It's a nice space and I'd rather buy for my stable financial services business if it makes sense.  I assume you negotiate the price same as any other purchase.  They are breaking ground soon and my thought is that they are trying to sell "if they get what they want."  

I'd consider going into without a realtor and making a lower offer.  700k instead of 760k for example.  My experience is the listing agent talks them into these deals wanting paid twice.  Any thoughts in general?

[Michael K Gallagher]

Quote from @Brandon Cox:

Decent office space is hard to find in my area - mainland side of Hilton Head Island and it's Bluffton or Okatie.  I've been watching for a few months to try and find a space to rent.   I found a brand new project and it's about 1450 SF and it's a modern building with parking with a shared elevator, stairs, and lobby.  The building is one of 3 buildings and each one is approximately 10,000 SF each.

These are some prices - 38/ft NNN with NNN estimated at $9/SF. Price to buy is $525/FT.

Do these numbers make sense on buying?  It's a nice space and I'd rather buy for my stable financial services business if it makes sense.  I assume you negotiate the price same as any other purchase.  They are breaking ground soon and my thought is that they are trying to sell "if they get what they want."  

I'd consider going into without a realtor and making a lower offer.  700k instead of 760k for example.  My experience is the listing agent talks them into these deals wanting paid twice.  Any thoughts in general?

 Listing agent is looking out for the landlords interests, so unless you are good going in unrepresented I'd always recommend getting your own representation regardless if you are buying or leasing.  

As for those lease numbers, understanding it is still new build I hope there is some TIA built into that base rent otherwise it seems quite high if its a cold dark shell delivery with no buildout.