Is Office Real Estate a Great Investment Right Now?
Link to Twitter Post Great tweet from John Blatchford explaining why certain office properties could be falling to price levels where they become good future investments. While not every office property will bounce back, there are going to be some generational wealth opportunities coming from intelligent buying strategies.
Here's the tweet:
"Why office real estate might be a great investment right now:
The bad news - we probably never get back to peak 2019 office.
Work from home is here to stay, office occupancy is way down, and property values have plummeted.
If you bought office in 2019, you're dead.
BUT, coming out of the pandemic, people ARE returning to their cubicles.
A clear trend 2020-2023 of people back in-office, and likely to continue.
So 2020 looks like peak work from home.
More people in the office, while we build less of it and convert a bunch of the old ones to housing.
More demand, with less supply.
If you can buy office at "2020-2023" prices (a big if), you should do well as we all get dragged back to our desks over the next 5 years."
Contributed by: Sebastian Torres
Sebastian Torres is an Associate Vice President at CommCap Advisors. He joined CommCap in 2016 as an analyst and his current focus is partnering with Kyle Nagy to originate, underwrite, and close commercial mortgages. He has been involved in underwriting and closing over $400 million in new acquisition or refinanced loans during his time at CommCap.
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