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Broker’s Advice to Office Owners: Consider Disposition or Repositioning Strategy
Continuing the trend started in 2022, economists and real estate experts alike see 2023 as “the year of increases,” spanning everything from interest rates to vacancy rates among commodity office buildings. Accordingly, now is the ideal time for owners and investors of commercial office assets to strongly consider new disposition or reposition strategies, said Owen Rouse, VP of Baltimore-based MacKenzie Commercial Real Estate Services, LLC.
“Owners and investors of commercial office buildings, especially smaller and older assets situated in suburban markets, are advised to closely monitor current economic and real estate trends that could conspire to negatively impact values,” said Rouse. “Assets especially at risk for decreased valuation include those with smaller floor plates, aging HVAC systems and those with principals getting close to retirement age.”
He added that possible solutions include establishing a new marketing and leasing strategy, selling the asset or initiating an aggressive repositioning or redevelopment plan.
- ◦Lease
- ◦Sale/Acquisition
