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Office Lease/Option anyone?

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I am taking some interest in commercial real estate, anyone here do that?


Recently I come across a seller who wants to sell his 900 sq feet Condo office in a building, He was using it for his own business.

so I've done some research, Edit: initially i asked to do a lease option about this, but after checking the price and all a lease option doesn't really offer that much incentive. The property value hasn't changed in 8 years.


The building is in good condition.

the area vacancy for office is 6% to 9%.

The maintenance cost is $151 x 12 = $1800

the market rent is $1200 + utilities x 12 = 14,400


it looks pretty simple from the surface, so assume 10% vacancy I should expect $13000 gross rent, subtract maintenance cost let's say I should get $11,000 net rent right?

of course nothing is always as simple as it looks, so what am i missing? What other cost should I consider?



If I offer $110,000 that would give me 10% return. hmm seem like a tempting starting project. It's not investment grade but I'd still consider it a good income property to hold. Since residential property in the area won't ever get this.

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