Office Condominiums? - Posted by Tony S. in FL

Posted by ray@lcorn on September 10, 2003 at 07:32:08:


As an asset class, office projects are the poorest performers in the country right now. But that may or may not be true for your local market. As you guessed, it comes down to gauging the demand factors in your particular market.

As a property type an office project is generaly less management intensive than multi-family. Returns will be on the same level as retail properties in a healthy market. In my market the standard office lease is a three year intial term, with negotiated renewal options.

All things being equal, a condo project will offer a lesser return than a complex managed by the owner. It has to be that way because the association performs the function of management. Just like buying frozen food vs. fresh ingredients… you pay more for the convenience.

If the market will allow the pass through of the association expenses to the tenants then you may have a fairly hassle free investment and a decent return. But again, it comes back to the market.


Office Condominiums? - Posted by Tony S. in FL

Posted by Tony S. in FL on September 09, 2003 at 20:12:22:

Office condos…good invesment? Bad?

I’m sure they’re like anything else: depends on the deal, location, tenant, market, etc.

But, generally are they good?

The ones I find locally are medical, attorneys, accountants and other highly professional tenants.

I’d think that perhaps they might be harder to get tenants initially, but the tenants would stay longer (perhaps office condos have longer leases?).

Building maintenance taken care of by the condo associaton. Looks like a fairly hassle-free deal.


Tony S. in FL