Office Landlords: How's it going? (2023 Q4)
Greetings, those who work in the office sector! How are things going? Anybody doing any deals right now? What are cap rates where you are, and with what kind of product? How's your occupancy? How's your leasing? Are you doing capital projects?
My two buildings are like a tale of two cities. One is doing just fine, nearly fully leased and smooth sailing. The other: high vacancy, quiet, and unsure of what the future holds.
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Just one office building in my portfolio at this point in the Upstate of South Carolina. Two story, 7500 sq foot building with 5 tenants…just had one new tenant sign a lease for 1200 square feet even before the exiting one departs, and another current tenant has requested a 2-year renewal extension several months before their lease term ends. The spaces in the building range from 650 sq feet up to that 1200 square foot space. However, bigger office spaces (> 6000 sq feet) in Greenville, SC have had a harder time it appears, which seems consistent with some other metro areas.