Buying a small office building - opinions??
Hi! We have an opportunity to buy a small office building in an upper class town and neighborhood in Connecticut.
Building is 10,000 sq ft and is about 17 units right now. that is made up of:
1 apartment
16 offices
All updated utilities and mechanicals
Fairly large piece of land - 2 buildable lots on it
First floor: occupied by one long standing tenant
Second floor: remainder of offices - about 5 vacancies - is basically a co-working space
Beautiful/highly desirable location
Negotiated price is good. Will be a seller financed deal. Numbers pencil out well and based on the cap rate for the area, filling those vacancies should drive the value much higher with no work other than just bringing in new tenants.
Question is, does anyone have experience with small office buildings? Obviously, views on working in a dedicated office have somewhat shifted. Our opinion is that large office spaces may be going in the wrong direction, but small offices like this still have their place for people that do not want to work at home or cannot work at home. Thoughts?
Thank you!