Investing in office real estate: well worth considering

22 Mars 2022
Investing in office real estate: well worth considering

Benefits of investing in office real estate

The best time to borrow money for an investment in real estate is when interest rates are at an all-time low – which is the case today. You bring in more in rental income than what you pay off to the bank. That means your cash flow is positive every month.

Of course, this applies to any type of real estate. However, office real estate can yield up to twice as much return as residential real estate. The average return on commercial real estate is between 5 and 7 percent, while the average return on residential real estate is around 3.5 percent.

Office real estate is usually rented by businesses, which also brings multiple benefits. Since they do not want to keep looking for a new space, they often enter into long-term contracts. Typically 6 to 9 years, while 3 years is more common for residential real estate. For an investor it means you can be sure of income for longer. Discover our investment opportunities

 

Businesses: the ideal tenants

Businesses will also take care of your building properly and maintain it well. Their office space is like a signpost, helping them bring in (potential) customers. Businesses usually also pay on time. Two more benefits that are not as typical in residential real estate.

The costs are also clear and comprehensible. An office real estate tenant also pays the property tax – a not insignificant saving. Internal maintenance and renovation costs are also borne by the tenant. Maintenance costs for common areas are of course borne by the owner/landlord, but overall they are very low. 

An office geared to sustainable growth

By investing in office real estate through Growners, you are also investing in the development of businesses in Belgium. We specifically look for large office buildings which multinationals have left. Where it used to be impossible for a business to have a professional building in a business environment, Growners now makes it possible to have an office space perfectly tailed to your size. We are deliberately investing in upcycling. We make office real estate attractive for new tenants, breathing new life into buildings. So, in addition to being a profitable investment, it is also sustainable.

Of course, it's also possible as a business to purchase office real estate itself. Today, thanks to Growners, you don't have to be a major international player to invest in your own real estate. As a business, you can contact Growners to purchase the exact property you want, specifically tailored to your needs. We offer options from 30 to 8,000 m2. In other words, investing in the purchase of your own office space is an investment in the future of your company.

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