Renting office space to smaller tenants VS bigger tenants?
I am a 10 year residential real estate investor but I have limited experience with commercial real estate. I own 3 commercial properties all purchased in the last 3 years so I am still learning as I go
What is the opinion on renting 400-800 sq ft offices VS leasing the entire unit of 1500-2000 sq feet to one person?
When I purchase vacant buildings, I am very eager to get tenants after we rehab so I am usually willing to break up bigger spaces to accommodate multiple smaller tenants.
Should I be more patient on waiting for a bigger tenant or can you do well tailoring to small tenants? I have been offering roughly $1.00/sq/ft for larger spaces and $1.40/sq/ft for smaller spaces. So the cash flow when fully leased should still be good. The only negative I see is more tenants more work and more turnover.
Thoughts?