In this episode of the Property Profits Real Estate Podcast, host Dave Dubeau chats with real estate entrepreneur Ken Naim, who shares his innovative approach to investing in suburban office spaces. As an asset class often overlooked, suburban offices offer incredible value-add opportunities, especially in a post-pandemic market.
Key Takeaways: -
Why Suburban Offices? Ken explains why suburban office spaces are outperforming their downtown counterparts, with higher occupancy rates and greater appeal for both employers and employees seeking work-life balance.
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Value-Add Strategies:
- Offering unique amenities like shared training rooms, outdoor picnic spaces, and upgraded interiors.
- Targeting properties with 60-80% occupancy to optimize returns through lease-ups or rent increases.
- Transforming underutilized areas (e.g., storage rooms or parking lots) into income-generating spaces.
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Case Studies from Ken’s Portfolio:
- Recent acquisitions include a 92,000-square-foot office building in Cincinnati, a 57,000-square-foot property in Dayton, and a 37,000-square-foot office in Orlando.
- Diversification into retail, industrial, and land entitlement projects.
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Challenges in Office Space Investing:
- Longer leasing cycles compared to residential properties.
- Handling tenant improvement (TI) requests while balancing costs.
- The importance of creative problem-solving to differentiate properties in a competitive market.
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Future Goals: Ken plans to close 5-6 new commercial projects over the next 18 months, focusing on properties with high cash-on-cash return potential and opportunities to double NOI through strategic improvements.
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Ken’s Investment Model: While he initially self-financed, Ken now collaborates with partners and investors, ensuring projects are both profitable and low-risk for everyone involved.
- Get Interviewed on the Show! - ================================== Are you a real estate investor with some 'tales from the trenches' you'd like to share with our audience? Want to get great exposure and be seen as a bonafide real estate pro by your friends? Would you like to inspire other people to take action with real estate investing? Then we'd love to interview you! Find out more and pick the date here: http://daveinterviewsyou.com/
