T he world is changing rapidly, with external forces such as Covid-19 creating new and uncharted environments. It’s essential that today’s office investor monitor the current state of affairs in the U.S. and invest accordingly. So where is the opportunity today in office property investing? Investment-grade locations In times of danger, the market rewards those who only choose the best locations. There is a flight to quality for lenders, and since virtually all office buyers use debt than you need to follow their lead. Real estate is all about “location, location, location” and if the office building is not in a strong one, you are probably better off passing on it. The only way you will fill a lesser location is with reduced rent, and that puts you in a tough position when Class A rents ease. It also means that you will be perpetually lowering rents as the condition and desirability of your property wanes. Solid infrastructure The income your office property der...
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