Commercial Real Estate Investment - Banning CA

[Account Closed]

I am in the process of closing on 15,000 sq foot building in Banning California that is currently vacant. 

I am wondering if this is a wise investment?

Purchasing for 1.1 million all cash no financing, the goal is to get a tenant in as soon as possible.

Not sure what realistic expectations are in this market of finding a tenant quickly but hoping to find one in the next 3-6 month and cover expenses out of pocket in the meantime. 

Looking to get anywhere from 75 cents a sq ft on up. If I can it makes the cap rate very appealing at 12% but getting cold feet over the amount of time I may be stuck sitting on a vacant building.

Thoughts on this type of deal and investment strategy? All help appreciated. 

[Bjorn Ahlblad]

Vacancy for commercial real estate is huge these days and time to fill is not very predictable. Some warehouse spaces stay vacant for years. So unless you have an endless money pile and don't really care you might want to review your options and revisit your goals. There are plenty of investment opportunities for the kind of money you are talking about. That is my 2 cents, take it for what it is worth. All the best!