Buying Commercial Condo / Ease of Selling in Future?
I'm out in the Chicago market, and we have VERY HIGH commercial property tax which results in fairly expensive office space (and lots of current office vacancy).

Money is pretty cheap right now, and I'm considering buying an office condo / flex. industrial space (\~3,000 sq. ft).

My commercial real estate broker, thinks it's a terrible idea.   He says these small spaces can take really long to sell.   Right now in the post-COVID boom cycle, these small spaces are selling really quickly.

Has anyone ever seen anyone come out well on a small condo owned space in their market?  Prior to COVID, I've seen those condos sit for A LONG Time.

If you could get a 10% - 11% return  (vs. leasing), would you go for it given all the illiquidity of office / flex condos?
[{"id": "hegfhbt", "text": "Listen to your broker.", "replies": [{"id": "hegiqq0", "text": "100% this \u2b06\ufe0f", "replies": [], "depth": 2}], "depth": 1}, {"id": "hegpazy", "text": "And do you have experience in this space? Or are you entering it for the first time?\n\nYour broker only gets paid when you buy or sell something. And your broker is telling you to avoid this at all costs. That advice goes directly against your broker\u2019s own financial interest.\n\nJust think about that. \n\nHe could tell you what you want to hear, and get paid. Or he could give up money and tell you what you need to hear.\n\nBest of luck, but I\u2019m going to join the chorus here and just say pass.", "replies": [], "depth": 1}, {"id": "hegqskc", "text": "In Chicago, commercial condos are at a tax disadvantage vs mixed use buildings. They can be a bit illiquid as some investors don't want to deal with a condo association they don't control who can randomly approve special assessments, etc. and restrict signage / uses of the condo.\n\nAll that said, they can make sense for users who want to occupy it themselves. You can get an extremely low rate right now and with SBA financing put very little down as well. Worth considering, plus you don't need to worry about your landlord not renewing your lease or jacking up your rent.\n\nThere are both pros and cons and whether or not it's a good idea depends on the specifics of your business and the specific condo you'd be considering.", "replies": [], "depth": 1}, {"id": "hegv0ld", "text": "Look at the Garland Bldg or 205 W. Wacker. There\u2019s a reason that there\u2019s 20+ commercial condo units in each building for sale. \n\nYou\u2019re better off buying a vertical subdivision. Those aren\u2019t beholden to condo decs", "replies": [], "depth": 1}, {"id": "hegv2lp", "text": "Less and less businesses and operators are leasing small offices/workspaces.  It's normal for operations to be out of a home or co-working space.  Business condos are not attractive.  They are expensive.  They have additional costs.  They are not always needed.\n\nLook at the current workspace demand.  Don't buy into a space where supply already greatly outweighs demand.", "replies": [], "depth": 1}, {"id": "heh8a31", "text": "We've been renting for 10+ years, in a smaller space (\\~1,000 sq. ft) on a great lease back in the big downturn of 2010's.   Co-working doesn't quite work for us corporate image wise in terms of our business and client\u00e8le.\n\nI've flipped residential housing, but never owned commercial real estate.  Work in consulting, so every hour worked is money to me.  I'm not interested in buying a building and trying to lease it and start a commercial real estate busienss.  In the suburbs I'm at, I reckon it's at least 75% vacant suburban office buildings (it's crazy bad -- the building we are looking to lease is 95% empty -- super nice building).\n\nOver the last few years, we've looked at a few condos and ran the numbers and always found \"deals\" with super busted / broke Associations and a ton of deferred maintenance.   I just got on Loopnet and you can see these small spots are moving.\n\nMy current broker has a 5 year lease lined up for us, \\~$260k (we've been pushing the landlord for nearly a year on this deal).   I'm just getting some sticker shock at signing a quarter of million dollar lease, and at the end, we have nothing to show for it, and an option for a renewal at \"current market rate\" which will be a bloodbath for us.\n\nThere's so little appreciation in IL on owning (I'm penciling 1% appreciation in our model), that I know I should just let it go and lease, but it seems like such a waste of money.", "replies": [], "depth": 1}, {"id": "hr5xgu4", "text": "I've sat on this for three months and visted a few candidate spaces.   I really don't see many of these industrial condos selling like they were a year ago.   I really feel like work from home has really made a change for small businesses owning space.", "replies": [], "depth": 1}]