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ARTICLE -
Office & Industrial Complexes by
Robert Poe The office
building and industrial property sectors are two
of the most economically sensitive sectors of
real estate there are. Business will contract or
expand in each sector depending on the state of
the economy. Office space, even in premium
locations, can remain empty in a sour economy
for considerable periods of time. Industrial
space can be influenced by many factors in the
economy ranging from tax policy to plain old
simple demand and supply.
These two sectors
are also unique in that you have a number of
owner users and pure investors. A company can
buy an industrial property for its own use, and
an investor can buy an office or industrial
property for a pure investment play to lease
back to a third party business. Many business
owners prefer to lease so that if they expand or
contract they are burdened with the additional
headache of vacant property.
Office and
industrial can be a good, long term cash flowing
investment if the projects are structured
correctly. However, if the economy turns, they
are the first properties to feel the effects as
business pulls in its spending and moves to cut
employees and overhead. As capacity needs wane
in manufacturing and distribution, industrial
properties will begin to feel the effects of
economic slowdowns. National and international
economic trends will influence these two sectors
more than other sectors of real estate.
As these two
sectors are very specialized, a specialist in
these markets is recommended for buying or
leasing needs. The markets change weekly in
pricing and demand, and a competent commercial
broker or leasing agent can advise you on your
best options. We have access to very fine office
and industrial specialists in our database that
can guide you to your best choice for you
investment or business needs.
- Submitted by
Robert Poe, CCIM, Certified Real Estate
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