Often, investors do best buying real estate when things are depressed. If that’s the case, office buildings may be the place to look, considering how vacancies have risen in the past few years. The average office vacancy rate is now about 16.9 percent nationwide, up from 8.3 percent four years ago. In some areas, vacancy rates are well over 20 percent. However, an economic rebound might reverse the slide.
Offices buildings may fill up if job losses are over, in industries that are tenants of office space. What’s more, there are not a lot of new offices under construction, which is another positive sign.
The best opportunities might be in office buildings away from downtown. Look for properties with existing vacancies, in areas that are showing job growth already. Work with a reputable real estate professional to get an idea of what rents you might be able to expect, once occupancy rates rise to a sustainable level.
