People tend to remember the prices at the top of the market and are resistant to change for a while. There will be some that are losing enough to want out though. As you noted, there are plenty of offices without renters. If you can bring a tenant along and offer on one of the high vacancy deals, you may be able to add some instant equity. Otherwise, it is helpful to have plenty of cash to get you through for a while.
I would suggest a lot of shopping to seek out the really motivated types.
Profiting from empty office buildings - Posted by James Buster
Posted by James Buster on October 29, 2002 at 22:17:43:
Here in Sillycon Valley the office building market is getting its butt kicked, about 35% vacancy when I last looked. Retail doesn’t seem to be doing too badly, though. Buying or master leasing on speculation is obviously foolish, since I’d just be taking on the previous owner’s distress. What strategies (and how does one time them?) can one employ to profit from this potentially very lucrative state of affairs?
I was thinking of the same thing. Have you found out any secrets about how to exploit this situation? Seems like the people holding are losers. The people buying could be winners ?? But that is a good point about bringing along a tenant. Short of that, I think it is too risky still.