Investing in Office Properties 101

November 16, 2022

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Thinking about investing in an office property? Here's what you should be looking for.


 Though there are different office property types, there are certain features that make some properties better than others.


  1.Built in Parking or Parking Lot Space

Making sure that your tenants and their clients have parking spots makes your property more appealing to tenants renting. With your tenants knowing they will always have a parking space to come back to allows the tenants to have less stress.

 

  2.Upgraded Space

Not only is it the space that you provide but all of the amenities that it comes with are important to any person that is leasing. If you can give your tenant the space that they can utilize for themselves but also have a space to come together and collaborate your value as a property owner goes up. But by also helping them with access to wife, common space utilities, etc. (all of this can be intertwined into a lease agreement) will show that you are truly thinking about your tenants. 

 

  3..Quality Classifications

Office properties are held in different classifications that help determine the quality of the building and will be able to help market to the right prospective tenants. The classifications of a property go from Class A to Class C. Class A properties are the highest quality building, newly built, great location, well maintained, and has the highest rent. Class B properties are still seen as a value when investing, they are well-maintained, are a bit older, and have a medium range for rent. Class C is properties are the lowest class due to their poor location, outdated, not well-managed, and have the lowest rent. 

 

  4.Tenants

There are a range of office tenants that you can choose from.  You can have a small business renting a single space or a corporation that takes one to two floors of your property. An effective office property is mixed with large and small tenants but the key to it is having at least one anchor tenant. This anchor tenant signs a long-term contract which provides stability, credit, and gives your property and reputation (if a major brand has a name on a building, it shows credibility and will extend to other corporations that your property is the right property.

 

There are so many more features to look for too!  Connect with me today to go over the opportunities you have!

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cassiewells.com | cassie@cassiewells.com | 501.993.1973

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