Here is where you want to be looking as Residential is recovering. We may have a lack of demand due to the mortgage rates deterring home selling, but commercial office owners are seeing a permanent shift in the way we work and live. How can you score here?
- VACANT OFFICE SPACE IS AT AN ALL-TIME HIGH: In NYC alone, it is around 96,000,000 sq ft that is vacant. This goes for office space everywhere: big cities, suburbs, rural. Wherever there were staffed offices.
- “CLASS B” PROPERTIES ARE IN WORSE SHAPE: Target them first: Old-school brick, small windows, old elevators, poor locations. To convince workers to come back, companies are streamlining kitchens and installing fitness studios and cafes.
- THE 3 BASIC CHOICES LANDLORDS HAVE:
- INVEST TO MAKE MORE APPEALING: Amenities as described in “2’ above.
- DEFAULT ON THEIR LOANS: The value of New York’s office buildings could fall nearly $50B in the coming years, according to the New York Times, p 4B, 090323.
- CONVERSION TO HOUSING, HOTELS, RETAIL: Very good possibility for many buildings
Regardless of the property owner’s plans, there are many tenants who will need to move out or at least downsize. Make sure you are in touch with your past customers, and be mindful of who you can reach out to now. Many owners have multiple properties. It can be very profitable.
Onward and upward!