Have any of you developed business condos? What do you think of them? They seem like a good investment option for developing.
Before developing a whole bunch on new commercial condos, why not buy an existing one from a motivated, underwater seller? There are TONS of them out there, unable to rent their units and sinking by the month.
If commercial is 1-2 years behind the trend in residential, this may not be a good time to get in, unless you have free and clear land you are just sitting on. My experience is just in commercial loans - I have not invested in commercial myself. Loans are steady, but seasoning requirements and SIVA documentations is getting stiffer in commercial lending world.
Commercial condo conversions was my foray into real estate investing (back in the late 80’s) and although I haven’t revisited it since, depending on location and demand, it can be an investment that pays long term residuals.
This is what I did…
I purchased a 10,000 sq ft open space in a office building and offered office condos built to suit. I coupled this with a shared infrastructure such as a common conference room, shared secretarial services, shared PBX system, shared computer network, etc.
My target market was business start ups and one man business operations (like insurance agents, lawyers, etc.).
I found it to be a win-win—my office space and back room operations/adminstration costs were deferred and my tenant owners got affordable support staffing, infrastructure and office space.
Business condos seem to do well in my area.
What really surprised me was that shop/dwelling combination condos all sold out at very (very very) high prices.
That would be a shop with a living accomodation fir the owner on the upper floors.
They are in a fashionable area and nice buildings, but still… ?
How about Dialysis Centers? It’s a business on the rise. Have you seen many opting to set up shop in business condos?