In hot U.S. markets like Nashville and Austin, some small businesses are opting to own office condos rather than lease.
As some employers are shedding office square footage amid an increase in remote work, a handful of smaller businesses are so bullish on the future of the office that they’re buying space.
In the article Buy Office Condos Bloomberg more details are shared regarding CA South’s Allston office park, located in the suburban city of Franklin, just south of Nashville, is about 30% pre-sold.
Developers have started selling office “condos” to employers, betting that high lease prices and inflation may make the idea of owning small office spaces an increasingly attractive proposition.
The vast majority of white-collar employers rent or lease their office space from landlords; the biggest companies, like Apple and Google, own whole campuses. It’s much rarer to see small business owners buy their office space outright. A few developers in Austin, Nashville and San Diego are pitching to change that, selling units to solo entrepreneurs, low-headcount companies, and small medical practices that want to invest in their own commercial real estate.