Optimizing The Market With Owner Occupied Space
Savvy business owners know that the right office space – and amenities – can make an impact on sales, staffing and overall success. They’ve created a high demand for Class A office space, but, in many markets, the inventory isn’t making the grade.
Perceived property values and market performance can take a hit when the office landscape is filled with dated or vacant spaces yielding lower-than-average rates. But commercial real estate professionals are meeting this new challenge with a creative solution: targeting the end-user buyer. These clients plan to singularly own and occupy a property for their own use, and they may find unique opportunities and savings in older, existing office spaces.
Where investors and developers may see older buildings as undesirable due to high vacancy rates and low rents, these properties can be an affordable and convenient option to end-user buyers who need to accommodate growth. End-user buyers will likely need to make an investment to update and improve the space, but the costs will probably be lower than those involved with new construction. For medical facilities, government agencies, financial institutions and large corporations, this opens the door to owning high-quality, low-cost office space.
Not only does end-user ownership help companies save money, it save valuable time as well. Building from the ground up is notoriously time-consuming, whereas build-outs and upgrades can be managed on an advanced schedule. Plus, where most markets lack undeveloped land – especially land that is near desirable amenities, infrastructure and a strong base of potential consumers – existing spaces allow businesses to quickly move into a desirable location. What’s more, many contractors are willing to work with potential buyers to plan renovations before a final deal is made.
As end-user buyers make purchases and improvements, the benefits extend into the greater commercial real estate market. Buyers find the space they need at a great value, area property values increase, vacancy levels drop and the market on the whole grows stronger.