Posted by Luke Hoppel on March 21, 2006 at 14:04:45:
Also you can use a triple-net lease for office which is going to reduce a few possible headaches that you would have with Multi-family.
Office space vs. multi-family - Posted by Mike
Posted by Mike on March 20, 2006 at 14:57:21:
I’m looking to buy a smaller commercial property (under 1M).
Can anyone give some pros and cons on office space vs. multi-family apartments? Is there any other commercial type is fundamentally better at this time?
Thanks.
Re: Office space vs. multi-family - Posted by zach
Posted by zach on March 20, 2006 at 20:27:58:
Actually I was going to say the complete opposite. If the office space will be owner-use than 90% stated financing is available. Ofcourse if the office space is not owner-used than ltv’s are lower. With multi-family 80% Stated is the highest unless there’s seller financing involved.
Re: Office space vs. multi-family - Posted by wes
Posted by wes on March 20, 2006 at 17:25:08:
A few to add to you list.
You will usually get a higher LTV financing for multi family than office. For instance if a lender offers 80% maximum for multi family, they may only offer 75% for an office building.
Leases are longer for office space than multi-family, as well as the fact some businesses come to be associated with their location (whether they own it or lease the space). Thus when the time comes to renew the lease, they have to consider more than just moving as an issue but whether or not their custumers will move with them or at least search out their new location. Many will decide it is best to stay put.