If you’re thinking of investing in real estate, there could be an area that you’ve overlooked: office space rentals. Real estate investments don’t all need to be focused on residential rental property management. You can have success in Seattle rental property market by renting out exceptional commercial office spaces.
Commercial Office Spaces Can Be an Outstanding Investment Opportunity
According to Bigger Pockets, “Office assets are driven by a complex mixture of macroeconomic and supply-demand trends.” These include the growth of white collar jobs and improvements in the local or regional economy. These two factors are certainly present when you’re talking about the Seattle rental property market. The Seattle area has been booming in recent years due to an inflow of technology jobs.
You should also look at market supply, vacancy rates, and the speed at which new office spaces are leased. If the market is moving slowly and there are many vacancies, then it may not be a good time to invest. However, with Seattle’s economic boom, the city can certainly maintain a larger number of diverse office spaces.
What Makes an Office Space Stand Apart?
If you decide to become involved in commercial office space rentals, what do you need to do to make your office stand apart from the others?
- Consider whether you want your office space to appeal to specialized tenants. Add those amenities that those specialized tenants will require. For instance, if you have tenants who need access to high-quality technology, equip the office with those technologies.
- Plan your office design with consideration of the wellness of the employees who will work there. For example, according to Macy Newman, “When designing your next space, try to incorporate more natural light versus artificial lighting.”
- Understand the audience around you. If your commercial office space is in a residential area, you may also be able to rent out the space to other groups such as community groups.
- Provide choice in the office environment. For example, you could have a combination of cubicles and open spaces.
- If you have a small commercial space available, consider offering collaborative spaces where people who normally work-at-home can rent a desk.
- The Commercial Real Estate Institute states that “Despite the fact that workers have smaller spaces, they have more activities to choose from.” Consider the normal activities of the tenants that you want to attract. Set up the overall office spaces for those tenants.
- Create flexible spaces. Overall, today’s offices have fewer walls and more opportunities for diversity and flexibility within the space.
Get Support to Manage Your Office Space
Like a residential rental, an office space requires maintenance and an understanding of your rental clients. If you don’t live in the Seattle area or don’t have the time to manage your commercial office space, you could be at risk of losing important tenants. Conversely, if you spend time and money equipping your office spaces well and maintaining and repairing these spaces, then your tenants will be more likely to stay for the long-term. Luckily, property managers are available to help you understand the market, find tenants, and repair and maintain your office spaces.
At Lori Gill and Associates, we can offer you advice about Seattle commercial rentals. We know the Seattle property market and understand the challenges of residential and commercial rental property management. Talk with us about your real estate needs. Connect with us today.
