Commercial office building

[Sai T.]

Hello BP Gurus

I have experience in Residential properties but Zero experience in Commercial properties.

I’m intrested to Buy office building 

“Total 3,900 sq foot 2 story building. main floor has a foyer, reception area, 4 private offices, large open area work space, kitchen, and two restrooms. Acoustical drop ceiling titles, fluorescent lighting, upgraded carpets, wood cove base molding, and glazed interior doors. The second floor has two access staircases. This level has two large open work areas, 3 private offices, and a bathroom with shower. Interior pine ceilings and pine/painted gypsum board walls. Basement has storage and mechanical systems. 2 sump pumps in basement, Bosch fires alarm with pull stations, skylights, 4 Rheam 3 ton gas forced heaters, 120/240 volt single phase electrical panels. 13 parking spots.”

Taxes $15K

How do I get run the Rental and maintenance expenses etc. 

[Joel Owens]

I am not a fan of regular office. Retail fills up much faster in my market.

Office economy goes down they down size to warehouse space, move to office in house, or renegotiate the lease to take less space and do more commute work for themselves and employees,etc.

I like retail because certain types of businesses NEED the storefront to drive sales on a daily basis mainly experiential type tenants and more internet resistant where consumers cannot conduct business online.

Example a karate school where you go workout versus a vitamin shop where you can find a cheaper company online to order from and ship to your house or business.

Office for medical can be strong. TI's are heavy but doctor's tend to stay longer and do not like to move much once established in a space and location. With office building pay heavy attention to the roof, elevator, mechanicals,etc. Most are on gross leases or modified so the landlord eats bill for repairs not like NNN with base plus cam.

A new elevator can cost a few hundred k alone. Roof on 4k building can exceeds tens of thousands in some cases.