Office
Real Growth For Business, Personal or Enterprise
One of the major factors that draw investors to office real estate is multi-tenancy. Depending on a multitude of layouts an office property may have one to several dozen tenants.
Office spaces are broken up into several classes; Class A, Class B, and Class C assets depending on their age and quality.
Investing in office space is more capital-heavy than other types of commercial real estate due to the cost of building out space for incoming tenants. Although, due to the cap rate valuation office space commands some of the highest values.
The CBD is characterized by high-density development with buildings ranging from mid to high-rise buildings with structured parking and elevator access. Office buildings in this area house some of the city’s largest companies – such as Amazon, Bank of America.
Typically the CBD houses the financial district but will often have entertainment and retail sectors as well which makes it very appealing to many companies.
Homes that are commercially zoned are attractive to smaller, local, and professional services companies. They are former residential units, usually older buildings, that have been rezoned for commercial use.
These units attract businesses that prefer to forgo the corporate feel of traditional office space and instead of the homeliness of a space that provides a full kitchen, patios, and typically a fenced yard.
Medical office space is a professional space designed around the needs of a medical practitioner and can be extremely valuable and the most stable investment in the office world.
Tenants here can be any business from your local dentist to major surgery centers and hospitals. Medical tenants tend to spend quite a bit on their build-outs – upwards of $200+ per square foot, due to the requirements of their industry and the high-standard of aesthetics.
Since medical tenants often need more plumbing, larger elevators, and other specialized amenities, these leases tend to be 7-10+ years. Medical professionals also tend to stay in place for the long term, since the cost of moving and everything involved in doing so is high.
These buildings are built outside of the downtown core and many businesses find them appealing for a variety of reasons
- Conveniently located for the employees and customer base
- Often they don’t have to fight the congestion of downtown traffic
- Price is usually more affordable in the suburbs
Just like garden-style apartments, suburban offices sometimes congregate into office parks with different mid-rise buildings situated in a campus-like setting. This layout offers opportunities for green spaces which is appealing for many businesses.
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