Real estate investments are not always as lucrative as people might hope. Individuals and businesses looking to rent properties to others have to think about the future demand when planning a purchase.
Investing in office spaces for commercial rentals has long been a way for those with capital to generate regular income. However, demand for office space has slumped in recent years.
Those who own office buildings may want to look into other ways to monetize those properties. The demand for residential properties and the price of homes have increased in recent years. Can a property owner convert rental office spaces into condos or apartments for residential use?
There are many steps in converting a facility
In theory, building conversions are common and often lucrative when done properly. There are many challenges involved in this process that can decrease the chance of success and eat into the profitability of the project.
One of the first considerations will be securing the right zoning to allow for the residential use of what was previously commercial property. Additionally, the building itself will likely require massive investments. From expanding HVAC systems for climate control to adding egress windows and changing smoke detector systems, there will be many sizable adjustments necessary to make previous office spaces into habitable dwelling units.
The exact location of the property, the condition of the building and numerous other factors will influence whether a conversion is a realistic plan for an office building no longer generating sufficient profit for its owners.
Learning more about how to repurpose property and maximize the return on real estate investments can help those frustrated by market conditions make the best of their circumstances.