Investing in offices

Investing in office buildings is one of the options you have when you are interested in property investment. Office buildings are actually always needed. Even in times of the recent corona crisis. However, this has brought about a number of important changes. And that immediately creates opportunities.

Why invest in office buildings?

When you access to sufficient capital have to make a property investment, then you have many different options. Often the first thing that comes to mind is a investment in a flat or a home. These are a bit more obvious. However, investing in office buildings provides a number of unique benefits that make this an attractive option. Consider, for example:

• Extra-high efficiency: Extra-high efficiency is perhaps the greatest advantage when it comes to investing in office buildings. In 'normal' times, this involves an above-average return. This usually amounts to around 5 to 7 percent. This while traditional real estate investments generally provide a slightly lower return. So would you like to earn a lot of money from such an investment in the short term? Then it is important to have a number of office spaces on your radar. The expectation is that the returns in the coming period will also be on the high side.

   

• Ideal tenants: With office spaces you are dealing with ideal tenants. After all, tenants of office space often intend to continue renting for years to come. Moreover, SMEs always treat a space professionally. Serious companies ensure that everything remains clean and intact. As a result, you rarely have to deal with problems. This is not always the case with a flat or house. Especially since you have to deal with more new tenants on average. And so there is always a chance of a bad apple.
• Expected growth in demand: During the corona crisis, office spaces have had a harder time of it. More attention was paid to working from home. In some situations this has worked out well, which has led to a sharp decrease in the need for office space. However, there has been an overcorrection in recent years. Especially during lockdowns, the demand for office space was much lower than usual. Given that the light at the end of the tunnel is in sight, the the expectation that the demand for office buildings will rise sharply again in the near future. And thus also the value of this type of property.
• Many offers: Finally, there is currently still a relatively large supply for the real estate investor looking for an office building. As mentioned, there has been a lot of vacancy in recent years. As a result, you now have many more options than would be the case in normal times. Naturally, you are in a position to take advantage of this. Make use of the large supply to pick out the real gems. This way you will be able to maximise your returns.

What to look out for when investing in office buildings?

Investing in office buildings brings a number of challenges. As briefly mentioned, this sector has suffered greatly from the corona crisis. This means that there is automatically some more risk involved. Be smart about this by taking the following points into account:

• Current trend: When it comes to office buildings, it is especially important to keep an eye on the current trend. During the corona crisis, for example, there was extra attention for working from home. Many employees loved it. Until all kinds of problems started to occur. The trend where flex-working is the standard therefore seems to have a good chance. There is then a possibility of need for slightly smaller offices. Where previously everyone was always in the office, this now alternates much more. With the necessary consequences. Take this into account when investing in offices.
  
• Future-proof office: Furthermore, it is not only important to pay attention to the current trend, but also to keep an eye on the future. The demand for offices is subject to specific developments. For example, it is important that the location is optimal. Which cities are experiencing strong growth and are heading for a bright future? Those are the cities where you would like to buy office space and let it to others. At the same time, an office must be able to facilitate certain things. Think of the latest technologies, modern ways of working and room for growth.
• Spread your risk: Spreading risk is almost always a good idea. Especially when you are dealing with the somewhat risky investment in offices. For example, it is important that an office is future-proof, by being in the right city. Spread your risk by buying office buildings in different cities. You can also vary the size, to minimise the risk even further. Smaller offices seem to be the future, but you can never be sure.
• Find the right provider: After you have decided that a real estate investment does interest you, it is time to find the right providers. Ideally, you should choose a reliable office property provider with a good reputation. Examples of these are Growners, VGBO and Zimmo. See which office spaces are currently available and which ones seem interesting to you. This way it is possible to buy one and rent it out in the short term. The expected return of between 5 and 7% is then within reach.

Invest in office buildings with Immotokens

In principle, investing in office buildings is possible. However, it requires quite a bit of attention and care. Especially when you want to make the best possible investment. Today, there is a way to get this done a whole lot easier. Immotokens offers 2 investment packages for those who would like to invest in offices with a more limited budget. One is our co-invest formula from €100,000 and our starter formula from €1,000.