Otimo Properties’ Post

Office Tuesday Tenant Profile: The profile of office tenants, including industry sectors, creditworthiness, and lease terms, shapes the stability and income potential of office properties. Long-term leases with creditworthy tenants, such as corporate headquarters, government agencies, or established professional firms, provide income stability and reduce leasing risks for landlords. Diversification of tenant mix across industries and lease expirations mitigates the impact of tenant turnover. Your agent should conduct thorough tenant screenings and lease negotiations so that you secure quality tenants and favorable lease terms. These are factors that enhance the financial performance and attractiveness of office assets in the market and allow office holds to maintain a semblance of profitability. #realestate #business #commercialrealestate #investing #diversify #build #grow #challenge #results #service #professional #modesto #california #ca #stanislauscounty #centralvalley #investor #invest #REI #passiveincome #turlock

WSJ headline supports what we saw with Q423 Rents and what we are seeing in preliminary Q124 Rents...."The Office Market Is in Turmoil. So Why Are Rents More Expensive?" Answer- Flight to Quality (and stability) continues, Landlords putting A LOT more capital into transactions, Landlords holding firm on rents to preserve valuations, and we are also seeing tenants willing to pay slight premiums for short-term renewals so they can figure out what their future footprint plans will be. #sanfranciscoofficemarket #Colliersinternational. https://lnkd.in/gNrV-f3Y

Across the country office rents are holding firm and they are higher now than they were back in the fourth quarter of 2019. The average US office rent has an asking price of $35.24 per square foot. This is an increase from $34.92 per square foot in 2019. It is not a high increase, but compared to a lot of the negativity that the media is spreading, it shows office rents as a whole are still doing OK. I would recommend for investors looking into office real estate to really do their due diligence to make sure they are not buying or investing in a declining property. #officerents #officerental #workspace #officerentalprice #rentingprice #economy #useconomy #investors #investing #stock #stockmarket #propertyprice #realestate #realestatemarket

I was just talking about #NYC #office with Charles Mulligan and Evelyn Levine, and why the headlines about #office in distress don't necessarily translate into a dip in asking rates. Cutting rents to fill vacancies would reduce the appraised value which could impede an owner's refi potential. "Office rents are expected eventually to tumble, probably after owners and lenders are forced to restructure mortgages or sell distressed properties. For now, landlords are trying to justify the elevated levels by lavishing new tenants with expensive interior build-outs, months of free occupancy and other incentives." 

Across the country office rents are holding firm and they are higher now than they were back in the fourth quarter of 2019. The average US office rent has an asking price of $35.24 per square foot. This is an increase from $34.92 per square foot in 2019. It is not a high increase, but compared to a lot of the negativity that the media is spreading, it shows office rents as a whole are still doing OK. I would recommend for investors looking into office real estate to really do their due diligence to make sure they are not buying or investing in a declining property. #officerents #officerental #workspace #officerentalprice #rentingprice #economy #useconomy #investors #investing #stock #stockmarket #propertyprice #realestate #realestatemarket

Across the country office rents are holding firm and they are higher now than they were back in the fourth quarter of 2019. The average US office rent has an asking price of $35.24 per square foot. This is an increase from $34.92 per square foot in 2019. It is not a high increase, but compared to a lot of the negativity that the media is spreading, it shows office rents as a whole are still doing OK. I would recommend for investors looking into office real estate to really do their due diligence to make sure they are not buying or investing in a declining property. #officerents #officerental #workspace #officerentalprice #rentingprice #economy #useconomy #investors #investing #stock #stockmarket #propertyprice #realestate #realestatemarket

Office Tuesday Lease negotiations can be a complex but crucial part of securing the right office space. As a commercial real estate advisor, my goal is to ensure clients get the best possible terms. I'm seeing more flexible lease options becoming available, which can be advantageous for businesses adapting to changing work models. *It's important to consider factors like rent escalation clauses, tenant improvement allowances, and renewal options. Negotiating favorable terms can provide stability and predictability for your business. I'm also advising clients to include clauses that allow for adjustments based on occupancy levels. Understanding the market trends and comparable lease rates is essential in negotiations. #realestate #business #commercialrealestate #investing #diversify #build #grow #challenge #results #service #professional #modesto #california #ca #stanislauscounty #centralvalley #investor #invest #REI #passiveincome #turlock #sacramento

So why are owners of office towers continuing to raise rents in a market that is under stress? the answer is most likely in their loan and partnership documentation. When seeking a loan many borrowers have to agree to allow their lenders to review their leases, or at least their "major leases" and often the criteria is the rent they are getting. On the otherhand, the reason can be even simpler then that, that they are hoping that the higher face rents agreed to by their tenants will help them when the property is sold, re-financed or otherwise monetized. Often these higher face rents are offset by increased amounts of Free Rent and Work Letters agreed to by their Landlords. The Landlords want the higher face rents while Tenant's want lower net effective rents, that is the trade off. #CRE #RealEstate #CommercialRealEstate #CREFinance #RealEstateFinance #CommercialRealEstateFinance #Office #OfficeRent https://lnkd.in/gz8fJz_d

Is now the time to invest in commercial office property? The recent surge in interest rates has led to a notable decline in investor sentiment towards commercial office buildings. This downturn has created a unique market condition where high-quality office properties are now available for purchase at prices below their replacement cost. For astute investors, this presents an opportunity. Replacement cost represents the cost to rebuild a similar property at current prices, including land, materials, labour, and other associated costs. When office properties are priced below this threshold, it indicates a market undervaluation. Purchasing assets at these reduced prices can be highly advantageous, as it provides a cushion against market volatility and enhances potential returns. By acquiring commercial office properties now, at prices below replacement cost, investors can position themselves for outsized returns once the market turns and confidence returns. Watch the video or read our blog to learn more: https://lnkd.in/gmfqQ5B9 #RealEstateInvesting #OfficeMarket #PropertyInvestment #CommercialRealEstate #InvestmentOpportunities #RealEstateRecovery #CapitalPropertyFunds #UndervaluedAssets #OfficeAssets #RealEstateCycle #InvestorSentiment #MarketOpportunities #RealEstateStrategy #PropertyMarket #OfficeBuildings #InvestmentReturns Disclaimer: Past performance is not indicative of future performance. The distributions and investment returns depend on the performance of the underlying investments. Information contained within this post does not constitute financial advice, nor is it a personal recommendation. Capital Property Funds is not authorised or qualified to provide financial advice or to make an investment recommendation. Information contained within this post is general in nature and has been prepared without regard to the individual objectives, financial situation, or requirements of any person. Prospective investors should seek personal financial and legal advice before deciding to invest.

Many tenants use the argument when looking at a space or negotiating that a reduced rent is better than no rent for a vacant space they have interest in. But many owners would rather it sat empty for the interim vs reducing the overall value through a rent reduction. When you start lowering the rent on a property it does alot more than just losing a few bucks for the owner. #realestatenews #westfieldindiana #officeleasing #investmentproperty