What is the true meaning of owner-user opportunity? Overpriced for investors?
I always look through the class b/c listings to see if there are any deals in the making for a repositioning play but without going too far into the flyer I see things like "great for owner-users" or "multi-tenant office but would be a great owner-user building". Is this just fluff for stubborn owners trying to overprice a building? Can anyone, maybe a broker help me understand this?
[{"id": "d52j0vv", "text": "Size, for one. Also, vacant or soon to be vacant properties. An owner-user isn't really concerned with prolonged vacancy or lease up costs that could influence a lower price for an investor. I'm not a broker but those are my guesses. ", "replies": [{"id": "d5csh42", "text": "They are still carrying the costs of the property but this is also why OP's is common when dealing with trusts and hand downs. ", "replies": [], "depth": 2}], "depth": 1}, {"id": "d52tfkk", "text": "like azz said, when running a cost comparison, users do not have the same monetary restraints as traditional owners do. An investment owner may need to return 10%-12% to his investors whereas a user doesn't care about the return because it will be part of their operating expenses. Also it has to do with the branding of the building, if the market thinks of it as a value-add or a user play then it will be viewed differently. At the end of the day it is a version of fluff, but its just targeted fluff\n", "replies": [{"id": "d5cslgu", "text": "This is what I was trying to say but couldn't put as well. ", "replies": [], "depth": 2}], "depth": 1}, {"id": "d59yqt2", "text": "It means the landlord won't put a dime into the transaction and yes, you're going to grossly overpay which is why they sit vacant for a long time.", "replies": [{"id": "d5acvk3", "text": "Alright that's what I was thinking but that makes it clear. Prospecting for value-add deals seems to be getting much harder. Any advice? ", "replies": [{"id": "d5cs3ol", "text": "What type of business would it be for or are you trying to become the landlord?", "replies": [{"id": "d5i8bxl", "text": "Landlord", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]