Office Space, Rates Today & What's Ideal
N.E. Ohio’s office market has been soft in recent years. In part this is due to a changing economy and improved technology. We office users tend to be more mobile these days and rely heavily on our devices. This phenomenon has allowed us to work from our homes, cars and most anywhere we can be connected to the internet. The result is less demand for office space.
While rents have been stable, they are increasing at a slower rate. Meanwhile the cost of new construction continues to climb as well has the cost to refit existing office space. Tenant improvements can easily reach $65-$125 per square foot. This is a high cost, particularly if a lease term is less than 5 years.
Out of this dilemma comes opportunity. Finding existing space with occupants is one option. Many good businesses retain their locations for long periods of time, presenting financing options with rates still below cap rates. Office property management is simpler than residential and mortgage rates are still very affordable.
Well maintained properties with open floor plans, clear span roofs, good highway access, low energy consumption and on fiber networks are ideal. Even with vacancy, these may be excellent investments, because the cost to build new is so high, leasing at a competitive rate becomes nearly impossible.
So, let Gerspacher Real Estate Group, Inc. assist you in finding the right office space for your needs.