Office Investing What the Heck is it

Location, location, location. Location is everything in office investing. If the location does not have good business, the location should be passed up. That also means that the owner needs to lower the monthly rent shall the property is not in a good position to generate good revenue for the business. Therefore, always take location into account when acquiring an office building.

The building. The building generally has roof problems and thus can cost quite a bit to fix. Use cement and bricks for renovation so that they can last a long time.

The tenants. Having tenants with good paying track record is essential to the property. This ensures the owner can take care of the building mortgage itself. It also comes back to the fact the office building should make good business for the renters to have the income to be consistent with the rent. Especially in this time of Covid, it is utmost important that the building generate good business for the renters in order for them to have enough to keep the rent consistent.

Investment timing. Consider the time to buy the real estate as there are different cap rates. We always want to buy low and sell high.

Hiring a management company. With an office building, one can hire a management company to manage all the rental logistics. This will enable the owner to be a 100% passive income collector. There are many ways that the owner can delegate the work to the management work such as managing solely leasing and not handling the revenue or they can do both. How ever the work is handled, it would be an agreement between the owner and the management company what the owner wants to do.

Pick an established management company. Do not go after a newbie on the block. Choose a company that has been on the market for awhile that can streamline the work from the beginning. This would make it easier for the owner to work with, to trust, and to have a peace of mind.

Check references. To ensure that the management is top-notch, the owner can conduct a reference check as well as go in-person to a property that the company is managing. The owner can also ask around with other tenants how the company is managing. The bottom line to know how the company is doing as a business.

Conclusion. Office properties are another venue of real estate investing. Above list is not exhaustive but it is a good start for young investors.

Topics: Real estate, investment, office investing

Work cited: https://www.creonline.com/where-the-opportunity-is-in-office-investing-today/