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Chose the old downtown building over the new flex space, three years later
Back in 2021 I had to pick between a 1970s office building near the courthouse in Des Moines and a brand new flex space out by the interstate. The old one needed a new HVAC and had dated bathrooms, but the rent was $14 a foot versus $22. I took the old one and spent about $18K fixing it up. Now I have a stable mix of a law firm and two title companies who like the walkable lunch spots. My buddy who took the flex space is fighting vacancy at 60% occupancy. Anyone else find that older buildings with character beat the shiny stuff in this market?
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felixb252mo ago
Old buildings always win if the tenants actually use the space during the day. That courthouse location does it for you. People want lunch, coffee, and a walk after sitting in depositions all morning. The flex space guys are learning there's no substitute for foot traffic. $18K is nothing over three years when you're saving $8 a foot every single month. I've seen the same pattern with my own properties near city halls in smaller towns. Keep that HVAC maintenance plan current and you'll ride this out fine.
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