A friend of mine just purchased an office building that was in foreclosure. The building is about 16,500 square feet and two stories. It has beautiful glass windows all over and it looks out on mountains and desert - very scenic in the Southwest US.
He has a plan for tenants in 3/4 of the space, but has one more unit (about 4,500 Square feet) that he is trying to fill. The building is right next to a community center for a 1200 home development. The development was just purchased by a developer. There are probably 50-100 homes developed but the previous developer went bankrupt. The new developer is already putting up homes and they are selling.
It looks like the nearest city is growing well, and the path of growth will go right through this development, but the downtown is about 5 miles away right now. He asked me what I think he should go after to put in there. I've brainstormed with him for something like a day care or some kind of internet business (that is what is renting the upstairs).
I would love to hear the thoughts of people on this forum. Thanks.
Wouldn't want the daycare. That can eat up lots of parking and the other tenants might be turned off by all the kids and noise.
If the daycare is upstairs kids running around jumping up and down transfers weight and noise to downstairs tenants.
Internet business if you have the connections there for them to use sounds maybe promising.
Thanks Joel. Your comments about the daycare on the bottom floor make a lot of sense. Any thoughts on who he could call to find tenants? Like a local Chamber of Commerce? Or a University?
What about an SIOR leasing broker??
They should have some tenants in the area wanting space. Has your friend priced his rent per sq ft better than other landlords?? I imagine so if he bought a distressed property at a much lower basis than other owner in the marketplace.
Your friend can definitely call around and pound the payment for another tenant. Pilfering close by centers who lease is about to expire might be ripe for the picking.
Some of my clients and friends average thousands of dollars per hour earnings so they would just rather have the commercial office leasing broker bring them the tenant and compensate them for it.
Did your friend build in leasing commissions and tenant improvements for filling the property up before they bought it??
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