Unlike residential real estate, commercial investments generally consist of purchasing properties used solely for business purposes and then leasing the space in order to collect rent from each business that occupies the respective space. One of the investments could be in an office building. Office Spaces come in all different types, sizes, building classes, and shapes. Some are favored by one business type while others are liked by other industries.
Every office building may have different kinds of office spaces. Generally speaking, every office space is pretty much the same thing – desks, cubicles, conference rooms, break room, and everything else in there. But there are also Medical Offices and Flex Spaces.
Medical Offices differ from general office spaces in the following ways:
Medical offices have more rooms. Some of which are smaller rooms (exam rooms)
More rooms have plumbing (sinks), especially in exam rooms.
Medical Offices need a larger reception/waiting area.
Medical Offices demand higher rental rates but are also more expensive to buy.
Medical offices need more parking spaces.
Flex space is a type of office in which a tenant who occupies industrial space also has office space built-out within the building. This kind of space is for tenants who need to have both the front and back end of their business under one roof, from warehouse and/or distribution to sales, accounting, and management.
Properties can be further classified into 3 distinct categories:
Self-managed properties can be any type of office space and any class building and are normally smaller properties. We recommend buildings with less than five units. There are certain types of office space investments like Executive Suites and Co-working spaces that are not only self-managed but they are also a business. These need to be close to where you live.
Professionally Managed properties can be any type of office space but we recommend buildings with more than five units and only be A and B class properties. The only exception is office spaces or buildings in Condo Associations. These are good for distant and out-of-state investors.