Average holding period for Office/Warehouse properties ?
Wondering if it’s feasible to buy value-add office or warehouse and sell within 12 months or that only work with multiple dwellings? (Apts).
[{"id": "ietpyie", "text": "Is the office space or warehouse already occupied/in use? Are there parties interested in said office space or warehouse? Value-add anything practically works if it makes sense. Selling the office space within 12 months after value-add might still prove to be difficult, but it depends on the area as well.\n\nEdit: Monitoring for further information.", "replies": [{"id": "ieu67m5", "text": "Thank you for your input.  I started trading small apartments. Now it\u2019s too pricey to do anything that makes sense. So I\u2019m just curious if it\u2019s similar market with office/industrial but I\u2019ve seen listings where they are on market for more than a year or two.", "replies": [], "depth": 2}, {"id": "ieu6erw", "text": "I\u2019ve visited few office &amp; industrial. They average 6 to 10 units.  Majority are occupied.", "replies": [], "depth": 2}, {"id": "if3jusf", "text": "To piggy back off of this: a lender will have a seasoning period (which can vary usually 12 months) which will prevent you from selling within that window. Also depends on how long it takes for you to stabilize the property.", "replies": [], "depth": 2}], "depth": 1}, {"id": "ietuii1", "text": "I\u2019ve seen it done but only smaller or single tenant properties and most had the tenant in tow.", "replies": [{"id": "ieu6hk4", "text": "So most likely scenario is that it takes more than a year to find a buyer and close.  Ok got it.", "replies": [], "depth": 2}], "depth": 1}, {"id": "ieu1f8d", "text": "That's very aggressive and gives little time for stabilization/aging of the new tenants. Don't expect to 1031 out on the back end if you're moving that fast.", "replies": [{"id": "ieu6kzi", "text": "You\u2019re right! Don\u2019t think I can pull off doing 1031.  I did it once with apartments and it was very stressful.", "replies": [], "depth": 2}], "depth": 1}, {"id": "ieue4ko", "text": "Only if you have a tenant in hand, otherwise closing costs, improvements, etc. are going to eat a ton of profit.", "replies": [{"id": "ieuiyaq", "text": "Yes preferably to have tenants locked up before selling. Would the buyers prefer longer lease term because with multifamily, the buyers may be eager to replace tenants during their holding period.", "replies": [{"id": "iev92z1", "text": "Long term leases", "replies": [{"id": "iev98ic", "text": "Thank you! Appreciate your response", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ieufh95", "text": "Financing is more difficult too given the generally longer lease terms and more customized upgrades versus residential.", "replies": [{"id": "ieuip2o", "text": "I\u2019ll keep in mind about the challenges of financing for myself and the buyers as well. Thank you!", "replies": [], "depth": 2}], "depth": 1}, {"id": "iey2k6h", "text": "It seems the capital gains taxes would play out differently also.", "replies": [], "depth": 1}]