Reviving Older Commercial Property

[Renee Thorpe]

I own a three unit Medical/Dental building built in the early 1970's.  It's actually in great structural shape, and it's up to date on medical office codes and special needs accessibility.  Last tenant in one unit took out all the walls between treatment suites (with my permission), but the other two units show fine for medical.  Two units have 3/4 bathrooms adjacent to back office space in addition to the handicapped WC. In Tucson it's just not as snazzy as the newer offices and I can't get tenants.  I'm not personally in dire straits, but I would like ideas on how to manage this property towards full occupancy and a sell, without sacrifice, that is.  The 3500 square feet are on a massive corner lot, so there's lots of parking, and the zoning is great at 0-3, so it is actually now okay to be residential multi family or even live-work spaces.  It's too far from downtown to get in on the loft neighborhood culture, but these could be casitas.  I just don't know if it's worth investing in the conversions to residential & live/work.  This is in the Alvernon-Broadway area.  Any ideas (backed up with figures) welcome.  Thanks.