by David Landau August 28, 2015
office-condos miami

Office-Condos |Commercial Real Estate Investment Alternative

office-condos miamiConduct an online search for the term “Condo Office”  in the Webster’s Dictionary and  you will not find a definition. The same goes for Wikipedia. So what are condo-offices?

Condo-offices are a new trend in real estate investment.

This real estate investment opportunity is very similar in concept to the traditional residential real estate. Purchasing an office-condo unit is investing in a part of the pie.

All condo- offices are privately owned.

As in residential real estate, all expenses are shared amongst the owners of the units. Of course, the fees vary depending on the use features and size.

There are numerous reasons to invest in an asset of this type. Earlier this week, the Miami Herald commercial real estate /broker’s view  reported on the popularity of office-condos and pointed out the following advantages of this type of investment:

  • The increasing cost of commercial real estate leasing. The average asking rates for the Miami office marketing year over year have increased 5%.
  • This affordable portfolio offers diversity. In this market arena  Real estate  Investors now have the opportunity to invest in both residential and commercial real estate, thus dissipating the risk.
  • There has been a 13.3%* decline of available units to lease in Miami (Q2 reportings), an increase over the 11.6 % reported by CoStar’s First Quarter 2015 Miami-Dade County office market report.
  • A mixed use availability expands for additional tenant opportunities. This includes the select area of the medical industry and all the traffic generated.
  • Investing in an Office-Condos offers immediate income generating opportunities.

As with residential real estate, the opportunity to “flip” these units is very profitable. According to Fernando Ley-HaraA developer and principal of the Aventura -based McKafka Development group…

You can buy at $180 /square foot  and turnaround and sell it at $300.

The recent  pioneer of office-condos in Miami, One Flagler is nearly sold out. This unique opportunity in downtown Miami  is  similar to the condo conversions that proved popular several years ago. This building offered numerous advantages including sitting tenants.

New Update | Office Condos

Plans were announced this week by a group of Argentine developers who have submitted plans to develop an office-condo in Aventura. Land for Forum Aventura was purchased in February of 2015. The target date to  break ground for this commercial real estate investment  is the first quarter of 2016.

Heading south in Miami-Dade County, the City of Coral Gables received and a  permit  application for a office-condo development in their fair city.  If approved, a 16-story Mediterranean-style building, with over 97,000 square feet on offering is slated for a completion in the early months of 2017.

We have a varied selection of available commercial real estate office condos offered for sale in the Magic City and surrounding areas. If you are considering expanding your portfolio to include commercial real estate contact us here.

 

 

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