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!