Office Space: Still a Solid InvestmentBy Sam Scarborough, Commercial Broker
June 02, 2021
There are roughly four billion square feet of office space in the U.S. which can be purchased at a deep discount.
Growing up, many of us were used to our parents going to work and spending eight or more hours per day in an office with their co-workers. Today, our work hours may not have changed, but more often the commute is from our bed to a desk or even a couch in our home.
In the world of commercial real estate investments, office space has become the ugly stepchild. Why shouldn’t it be? Social distancing rules looks like they are here to stay even after the COVID-19 pandemic subsides. And employers benefit from workers paying for their own expenses.
Baron Rothschild, a member of the Rothschild banking family, is credited with saying, "The time to buy is when there's blood in the streets." That said, there are roughly four billion square feet of office space in the U.S. which can be purchased at a deep discount.
Popular Trends in Office Space Properties
There are plenty of reasons to not overlook this class of real estate property. First, there is still a large market for office space, just not for large spaces that hold 100 percent of a company’s employees. A new trend in commercial real estate has businesses buying smaller spaces in which employees can work together at their discretion. Another popular approach is repurposing older office space. Many of these locations are in up-and-coming areas and can be repurposed for more lucrative income producing opportunities.
The third trend piggybacks on this same concept of location. Often, these empty offices are located in areas where the potential land value makes it worth purchasing the entire property. Sometimes, the value is so great that you can tear down and rebuild the property to suit the current market and still make a profit.
Opportunities in Commercial Real Estate
In conclusion, when looking for possible commercial real estate investments, do not overlook office space. If you consider all the options, you can find opportunities for steady income potential. Office space may have understandably decreased in popularity over the last 10 years, but when there is value to be found in the market, you will want to be at the forefront.
To search available commercial properties for sale or find a United Country agent near you, visit www.UnitedCountry.com.
About the author
Sam Scarborough is one of East Texas’ top-performing and most knowledgeable commercial real estate agents. He is currently an agent with United Country | Staples Property Group, a top 10 producing United Country office. He is experienced in working with individuals, investors and developers interested in commercial buildings and development land. Learn more about Sam and view his available commercial listings at www.UCCommercialTexas.com.