Business Model

Office

Office buildings are one of the oldest niches of real estate, with the first chancery buildings going up around the year 1000 in Europe. The American office building market is over 80 billion square feet in size – a colossal market which includes everything from small one-story units to the Sears Tower. Office buildings can be found in every city and state in the U.S., and even in small towns. Needless to say, there is probably a bigger range of price points in office investing than any other niche.

The business model of owning an office building is perhaps more complicated than other forms of tenancy as the office customer is much more demanding, paying a large price in monthly rent. While the primary role of the owner is to simply provide the office space, they are also involved in the technical finish out of the space for the customer, fairly sophisticated issues on preventive maintenance, overseeing a staff of managers and maintenance personnel (based on the size of the building) and proactively try to keep utility costs and parking facilities in order.

Rent Land

Marketing

Re-Investment

Business Model

Office

Office buildings are one of the oldest niches of real estate, with the first chancery buildings going up around the year 1000 in Europe. The American office building market is over 80 billion square feet in size – a colossal market which includes everything from small one-story units to the Sears Tower. Office buildings can be found in every city and state in the U.S., and even in small towns. Needless to say, there is probably a bigger range of price points in office investing than any other niche.

The business model of owning an office building is perhaps more complicated than other forms of tenancy as the office customer is much more demanding, paying a large price in monthly rent. While the primary role of the owner is to simply provide the office space, they are also involved in the technical finish out of the space for the customer, fairly sophisticated issues on preventive maintenance, overseeing a staff of managers and maintenance personnel (based on the size of the building) and proactively try to keep utility costs and parking facilities in order.

Rent Land

Marketing

Re-Investment

Pros

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Cons

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Market Research

Articles & Reports

TIPS ON CALCULATING THE CAP RATE ON AN OFFICE PROPERTY

TIPS ON CALCULATING THE CAP RATE ON AN OFFICE PROPERTY

The capitalization rate (or “cap” rate) is one of the primary measuring tools of any office building investment. It is a short form method of deriving the rate of return based on the purchase price and allows you to compare many properties simultaneously to select the...

WHERE THE OPPORTUNITY IS IN OFFICE INVESTING TODAY

WHERE THE OPPORTUNITY IS IN OFFICE INVESTING TODAY

The world is changing rapidly, with external forces such as Covid-19 creating new and uncharted environments. It’s essential that today’s office investor monitor the current state of affairs in the U.S. and invest accordingly. So where is the opportunity today in...

updates

Forums & Deals

Learning about and committing to investing in office is only half the battle. The real challenge is finding the right deal to invest in. These resources will help you find the right deal to give a diligence focus and potentially buy. Remember that finding the right office is all about volume, so the more potential deals you look at the better your odds of finding the right one. Don’t just look at a few options, look at as many as you can find. Success in office investment revolves around making as many offers as possible.

Education

Books & Courses

Before you risk any capital, your first step is to learn everything you can about how to profitably invest in this niche. To accomplish that, there are both free resources as well as books and courses to aid in your quest for mastery of this real estate sector. We recommend that you take advantage of every opportunity to learn as much as possible before you invest your time and money. The most important trait of a successful investor is being able to quickly separate deals into a “might be an opportunity” stack versus a “not an opportunity”, as well as know the steps to conducting superior due diligence. In niche investing, knowledge is power – so get as much of it as you can.

Providers

Brokers & Lenders

No buyer can succeed without assistance from those who can source deals, as well as finance them.

Brokers are an important part of finding properties to buy. This is their specialty, and they typically have listings that are both “public” as well as “private” (those that they are not allowed to reveal to the public due to restrictions from the seller). Successful buyers contact all of the brokers in their niche to see what listings they may have, as well as to get set up in their email database for announcements of new listings. For a complete list of these brokers click the Learn More button below.

Lenders are the key to successful real estate investing, as it is through the sensible use of leverage that rates of return are maximized. Banks generally all follow the same basic lending principles, but there are certain facts regarding each niche that have to be explored. In many cases – on deals of $1 million or more – you should explore using a loan broker (also known as “capital consultant”) to obtain a loan for you for a fee. This is extremely important on CMBS “conduit” debt and Fannie Mae/Freddie Mac “agency” debt. On deals under $1 million, you should focus on seller financing as well as local banks that know the market and are aggressive in lending to their base. For a complete list of lenders in this niche click the Learn More button below.

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