My fellow investors and I purchased a commercial office building in Rio Rancho, NM (just north of Albuquerque) at the end of 2014 when it was in bankruptcy. We did some minor rehab to the building and have it currently 65% full with an internet business taking the top floor and a restaurant in the bottom floor. It is a gorgeous building with beautiful mountain views. We are just having trouble renting the last lower section. The section needs to be finished - it's pretty much bare walls right now. The building sits in the middle of a large development, but the only calls we have had are from small independent one man shops like engineers and lawyers. Mostly they are interested in having access to the community gym next door if they lease from us.
I was wondering if anyone has some creative ideas for renting the space out? We are thinking of talking to some municipal government agencies, the local university, or maybe the local native American tribes who's reservations will force the path of development to go right through the building. It's just a matter of how long it will take.
Any creative ideas for renting the space out would be much appreciated.
Congrats on the office building purchase and getting it leased up at least part of the way. I'm new to Albuquerque but from what I can tell getting office leases it pretty tough around here. I've seen several large buildings all over town only 40% rented or empty all together. Nice buildings in good parts of town.
I think the future of office could be shared spaces. You could build out a suite of small spaces with common bathrooms and conference rooms for relatively cheap. Then some of those independent folks could add up to a larger portion of the property. Check out the business model of:
https://www.wework.com/ . You might have an edge being close to the community gym.
How many sqft are we talking and how committed are you to getting it rented?
Thanks for the info. It's about 5,000 square feet and I am pretty committed. I think we would be fine selling the building as well. Can I post the LoopNet listing on this forum? The shared space is an interesting idea. The building is gorgeous with floor to ceiling windows and a large development of houses going up nearby.
My first thought was co-working space as well. Albuquerque has some interesting places where this is happening. Rio Rancho has none... The far North end of Rio Rancho has some interesting things happening. Lots of growth and re-development (bosque brewing is a great example) Not sure on the exact location of your building, but personally, I'd be interested in a space that was not some coffee shop, had a community element and great networking opportunities. As someone who works remote, my go to places in Rio Rancho are the usual coffee stop and the library.
Hal - not sure the rules for the biggerpockets forums. As long as you're not doing the deal on here you're probably okay. But someone else should chime in.