Small Office Building Analysis

[Armand Soto]

Hello all,

I am looking at a potential office building deal and I was hoping to get some thoughts from the community on what people look for in office rentals. I have experience in analyzing small multi-fam properties but my knowledge of office rentals is limited. This is a smaller size office building (~5000 sqft.) with 8 office units and IS NOT a NNN property. My main question is, what do office investors typically look for in terms of cash flow assuming the CoC ROI meets your hurdle? I am used to small multi-fam analysis where I would be looking for a certain cash flow per door but is that the right approach on an office building?

Was hoping to get others' thoughts on cash flow based on their experience with small office rentals.

Thanks in advanced!