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Updated almost 3 years ago, 03/10/2022
Small office buildings
I am moving away from single-family rentals (been doing them for over 20 years). While they have helped me build some decent wealth I am ready to move on to other ventures.
I am currently under contract on a 10,000 sq ft office building that consists of small offices. Real estate brokerage, dentist, insurance, massage therapist, and commercial cleaning company.
This building has stayed full as long as I can remember or anyone I have talked to. We are under contract at around a 10% cap rate after we replace the roof.
Here is the interesting part. There is an entire 10,000 sq ft basement gutted and empty with 7.5' ceiling height. Many years ago it was occupied with a govt office. Unfortunately, there is no natural light. Looking at what the best use of this space would be. I am looking at putting a coworking space in there. Offer small offices with MTM affordable rents, a conference room, and some pay as you use office equipment. Keep the rental about 25% lower than the main floor. Also considering putting in a wheelchair verticle lift to make it accessible. It would be new construction with lots of artificial lighting.
Any other thoughts or ideas? Does anyone with similar property have feedback?