Converting 26,000sq ft to Office Space

[Alex S.]

Hey everyone!

I am curious about the costs and pitfalls of converting a large open space (2 floors/13,000 sq ft each) of meeting space into office space for lease. The price on the building is very cheap, but that is because the building also includes a large lobby area and a full auditorium (1,000+ people) with stage/lights that might be hard to lease. Plus, there wouldn't be any active tenants at the outset.  Currently, it is being used as a religious facility.

Obviously, it would take some work & cash to convert the meeting/lounge space into office space. I have no idea what I'd do with the auditorium, but the finances seem to make sense without that piece. Going rates for office space are from $7(bad) to $20(class A)/sq ft in the area.

All total, it is a 50,000 sq ft building on 12 acres listed at just over $1 million. It is adjacent to a large hospital with nice brick exterior.

How do you determine office space demand in an area?

Would you hire a commercial broker to find tenants? Is that before or after the buildout?

I know single-family pretty well, but dipping my toe into commercial has some new obstacles! Thanks for your advice!

[Daniel Lioz]

I think you have lots of opportunity here. The auditorium can be converted into climate controlled self storage pretty easily. the additional acreage can be self storage or depending on area boar/rv storage. Depending on zoning you can probably subdivide the tracks of land into other zoning areas with utilities to the lots can be sold off very nicely for development purposes.  Again depending on the zoning, I think there is lots of opportunity with the right ideas.