subject: Office Condo Market Cooling Off [print this page] A poll conducted by Grubb & Ellis and PNC Real Estate Finance of more than 100 developers, office appraisers and broker states that 54 percent believe the office condos have been trend that and the soar in sales is about to slow as interest rates go up.
The advantage of the condo for the business owner is they purchase and no longer pay rent which not lonely gives them greater control over occupancy cost but space as well. The office condo is an investment and many investors have taken this into consideration as well. Dallas, Texas is.
Several real estate investors are investing in the office condos. This is of particular interest as many are finding only a few potential tenants for the vacant space. While the market may have once been hot, it is slowing with signs of a past that has not always been the best investment for investors.
The quality of the condo and space is not the question it is the fact that finding a good tenant for the space is difficult. Often times when they are interested, they purchase their own property. Many of the future tenants of these condos are start up businesses that can only commit to a one or two year lease. And, as all of us know start up businesses will either make it or break it. For those that make it they will often times turn around and purchase their own office condo.
The office condos are great properties with wonderful features. However, as an investment, they are not always the best. Get to know the market in your area. Ask the advice of your real estate agent. Often times your real estate agent is the best advocate that you have. They know the market, they've been involved in the market and they are aware of what sells know and in the future.
While the idea of an office condo is great, if you are not purchasing it for your own company, but an investment, it is not always the wisest investment. Get the facts, know the area, speak with your real estate agent and make a thoroughly well informed decision before you purchase an office condo as an investment. You will be more than happy that you performed your research prior to buying when you do have a good, solid investment that you can turn around and sell at a great resale value. And, as always, make your decision based on what is best for you.
