ArticlesReader.com Menu
Newest Articles
Most Viewed Articles
ArticlesReader.com RSS
Submit Article
Login
Signup
Search the articles

Articles Main Categories
Advice
Animals
Automobiles
Business
Career
Communications
Computer Programming
Computers
Entertainment
Environment
Family
Fashion
Finance
Food
Health & Medical
Home & Garden
Humor
Internet Business
Internet Marketing
Legal
Leisure & Recreation
Marketing
Other
Politics
Reference & Education
Religion
Self Improvement
Sports
Technology & Science
Travel
Writing
Subscribe
Receive alert message from us when new articles submitted to our site for free.

Enter your name

Enter your email

Syndicate

















Related Products
Home::Real Estate

Office Condo Market Cooling Off

Author : Fox Realtor
First off, hereÂ’s an article published recently at www.realtor.org:



"A poll of more than 100 office appraisers, developers, and brokers found that 54 percent believe office condominiums are a trend that will come to an end once interest rates go up.

The poll was conducted by Grubb & Ellis and PNC Real Estate Finance. The typical scenario finds businesses buying the condos so they no longer have to pay rent, giving them greater control over space and occupancy costs. More and more office condos have been purchased as investments lately. Phoenix is one of the largest markets in this niche, with 189 office-condo properties in place and more than 100 others in various stages of development. However, other markets, such as Houston, with only three office-condo properties, barely register, even though that Texas city's office sector is three times the size as Phoenix's. "
Source: Wall Street Journal (12/14/05); Corkery, Michael; Forsyth, Jennifer S.; Haughney, Christine



Of particular note is in those office condos that are purchased as investments. Several real estate investors, myself included, have invested in these types of properties, only to find few if any potential tenants for the vacant space. In a market with the vacancy rate hovering between 15 & 20 %, I felt it was prudent to get out quickly. IÂ’m very glad I did.



ItÂ’s not the quality of the space that is the issue, but the fact that any tenant that is a good candidate for this space will very often simply purchase their own office condo. Many of the prospects for open the office condo space are startups or small businesses that can only commit to a one- or two-year lease. These businesses will either make it and buy their own office condo or fold up shop and move back to the spare bedroom home office from where they came leaving the investor to try to find another tenant.



Make no mistake, these are great properties, well built, with excellent finishes, that are outstanding values for the owner / user. As an investor, I would look to other areas, specifically industrial or warehouse properties, to spend my funds.



Good luck to you,



Marty Olson

Fox Real Estate Group

mo@foxreg.com

-------------------------------------

www.mnspaceforlease.com

www.officespacemn.com

www.warehousespacemn.com


Article Source: http://www.articledashboard.com





The Fox Realtor is experienced in commercial real estate in Minnesota. Working with developers, investors, and institutions to realize their investment objectives using real estate. He can be contacted at mo@foxreg.com, and more information is available at www.foxreg.com.





Spam emails More free articles

Related articles


  1. Home Selling: Making It Easy On Yourself!
  2. Real Estate Investing – Finding Cheap Houses
  3. Real Estate Investing – “The Neighborhood Factor”
  4. Real Estate Value: Knowing yours is Key to Mortgage Success
  5. Property Investment: Spoiled for Choice in Europe's Emerging Markets
  6. Nobody Loves A Landlord
  7. Malta's Market Battle
  8. An Investor's 1st and Most Important Lesson
  9. To Buy or Not to Buy
  10. Real Estate Values or Just Bad Habits
  11. Why I Love Country Living
  12. The Sadness of Old Buildings
  13. Buying an Unfinished Home Maybe Your Answer
  14. Cheap Homes For Sale In Great Towns
  15. Mechanic's Lien on Your House
  16. Encouraging Debt
  17. How Do I Bring Consulting Into My Lease Purchase Business
  18. Why Selling on Lease Options is Glorified Landlording
  19. Negotiating and Sales Skills Are Critical
  20. How to Choose the Proper Entity for Your Business
  21. How Long Your Mortgage Runs Determines How Much You Pay
  22. How To Give Your Home A Face-Lift: The Sellers' Guide To A Quick Sell
  23. How To Simplify Your Real Estate Buying/Selling Experience
  24. How To Spot A Good Buy
  25. Easing Your Way Into Homeownership: A Guide To Low Down Payment Mortgage Programs
More related feeds
Office Condo Market Cooling Off
The typical scenario finds businesses buying the condos so they no longer have to pay rent, giving them greater control over space and occupancy costs. More and more office condos have been purchased as investments lately. ...

Higher-end HDB market may be cooling « Lushhomemedia
Higher-end HDB market may be cooling. Posted by luxuryasiahome on November 14, 2008. No rush for condo-style Bishan flats as market sentiment turns sober. THE higher end of the public housing market is showing its first signs of cooling ...

Property Highlights of Singapore: Writedown Math May Sully ...
A seasoned valuer disagrees, pointing out that valuers estimate the capital value of an office block based on current market rents being fetched in the building, and then dividing it by a capitalisation rate (which would be the yield ...

Asia Property Report
The secondary market is also reflecting the cooling off sentiment as there is a year on year decline of ten to 15 percent. Buyers believe that the market is still overpriced and are waiting for further price drops before picking up ...

Domains Into Dollars, Virtual Real Estate Is Exploding | Singapore ...
Directory Resources Domains Into Dollars, Virtual Real Estate Is Exploding SingaporeProperty.5ver.com specializes in Singapore commercial properties, office, shop rentals, landed properties, condominium apartments and HDB flats buying ...

talk | discussion | StreetEasy New York Real Estate Search
In the office market demand for space will go down creating a downward pressure on rents. This in turn will lower the price of office buildings, Cap rates are going to be very tough to judge because decreasing rents typically means ...

Real Estate Blog - Updating the Los Gatos Real Estate Market for ...
The Los Gatos real estate market varies between zip code, price point, and home type (condo vs single family home). Today I studied the newest reports from Altos Research and shared them on my Live in Los Gatos blog.

Luxury condo prices come off their peaks « Lushhomemedia
Luxury and high-end residential projects attract more investors and speculators than the broader residential market. With the current economic downturn, many of them are off- loading their properties. Knight Frank’s Mr Mak said: ‘Right ...

Real Estate Blog - How's the Silicon Valley real estate market now ...
Keller Williams Realty Office Phone: (877) 397-5391 Cell Phone: (408) 204-7673 Email Me. A discussion on the real estate market and practice, particularly in Silicon Valley, CA. ...

Singapore Property Watch: Condo launch goes ahead despite gloom
A DEVELOPER is rolling out a rare condominium launch in Woodlands this weekend - optimistic that lower-than-planned prices will draw buyers, despite the gloomy market conditions. EL Development is launching the 99-year leasehold, ...

 


 

© 2007 articlesreader.com - All Rights Reserved