A "relatively new" concept in office space construction in our area is the office condo. The concept is simple and sensical, of course, being that it is better to own than to rent. And yet, still, many if not most businesses will continue to rent their space.
Therein lies a great opportunity for the investor. Rather than purchasing relatively low priced homes and/or residential condos to rent out to people with sometimes questionable credit and poor pay-on-time histories, buy an office condo and rent out to a business who can't afford not to pay their rent?
Beyond the fact that a business is more likely to be a good tenant, a business is only going to be utilizing the space during business hours rather than 24 hours per day... therefore, less wear and tear (at least theoretically). Couple these great factors with the fact that you can charge FAR MORE per square foot for an office condo than for a residential property, the benefits just seem to grow exponentially. It's all about leveraging your capital for the greatest gain.
Now, remember I am an investor too. I own several rental properties and they have been good investments for me and I will continue to purchase more but, like you, I'm always looking for new and better ways to secure my retirement.
Hey, I think I just talked myself into going out and buying one. Anyone want to rent a nice 1800 square foot office in the heart of one of Jacksonville's most desireable locations - it should be ready for occupancy in about 6-8 months. LOL
Timothy H. Fennell, P.A.
Susan A. Fennell, P.A.
Broker Associates / REALTORS
www.BestHomesInJacksonville.com
