My business is nearly to the point where I can use a small office for me, a secretary, and part time in house property manager. I originally planned on renting because its a little premature but this seems like it has some potential to be my office space and rent the rest.
So far i have only extensive single family experience (50+ homes) so this is similar but completely new to me. Here are details and property pictures.
4862 Sq Ft. Century old home - bones and mechanical are very good - just dated cosmetics from a 1984 remodel. The attorney who bought the building in the 80s gutted it and used part of it for his law firm and rented the rest. It is essentially vacant because he retired and other renters left as it went up for sale. It has been on the market for 2.5 years but he started it at 375K in 2017 and dropped it to 290K in March 09 and 275K in May 09.
This building is in my home city and the area is called "Downtown Willoughby" which has become what I would consider a top 5 trendy bar/restaurant area in Cleveland suburbs. So the area is desirable and on its way up.
A few questions -
- Would I be eligible for SBA loan since i am doing business out of it?
- Assuming I am not eligible for SBA loan - is there anything I can do creative with the offer to reduce my down payment other the owner financing - repair credit, ask for closing costs ect...
- How should I break the building up? Is it better to have 2-3 large offices or try and squeeze 6-8 smaller offices? This will be my hardest part trying to determine what kind of rent i can get with little experience in office space.
PS - My biggest concern is being able to lease the large space in the back of the building that was used for a small law firm. Do law firms and accounting firms usually rent space like this or will they be like the attorney who is selling the property and just purchase a building instead?
Hey Adam, there are two office spaces for rent above finestra gallery down the street that you could use for comps. They are currently in the mls. $280/$250 for what I believe is one larger office (12x17) and a space with two smaller offices (12x9 and 9x10).
Thanks Jeff -
The setup on this one is much larger then that. I am having trouble finding comps for a large 4-5 person office.
Could you use the 4-5 person office for your business? As far as attorneys/accountants leasing v owning, there is no universal answer. Some see the value of owning real estate and others don't.