All Forum Posts by: Alex Houser

Thank you all for the great feedback! I sincerely appreciate your insight. My apologies for the lack of information - I was sort of just posting to get a temperature gauge for office rentals in general. That said, here are the actuals:

Unit count: 13 offices (sizes range from 165sqft to 2,800 sqft - it's a local mom & pop type commercial building in an A-/ B+ town that's growing) 

Gross Rent: $20,801

Expense Ratio: 50.7%

NOI: $9,736 (year 1, after vacancy) 

---

Cash Flow: $2,536 / mo

Cap Rate: 6.5%

2 partners and I are looking to purchase a small, 13-unit office building in a bustling local town in northern NJ.

My question is simple - Am I foolish for buying office space right now?

The Deal:

$1.8M for the property, which generates $20.5K in gross monthly income. It's fully occupied at the moment with leases into 2026. Owner will hold the note at 6% with IO payments for 3 years. 10% down.