Warehouse and office buildings for the same price

Right now you can purchase Class A office buildings at the same per-square foot prices as you can warehouse/flex buildings. On a NNN basis the rental rates may even be the same, but the difference is in the cost of tenant turnover. Warehouse vacancies are single-digit and might cost the landlord a few bucks a foot for tenant improvements, whereas the Concord California office vacancy is currently 20%, a space might sit empty for 12-24 months, and the new tenant might require $20-30/rsf or more in tenant improvements.

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