Office and Industrial Tenants Look to Purchase Instead of Lease

Amy Calandrino in Conversation with Florida Realtor® Magazine

Earlier this quarter, Q4 — October 2020, Founding Principal Amy Calandrino sat down with Florida Realtor® Magazine for its October issue to give her take on the market, touching on the idea that office and industrial tenants look to purchase as opposed to leasing. The interview was conducted by Richard Westlund, a Miami-based freelance writer.

In the interview, Calandrino touches on the concern landlords experience due to the pandemic and the adjustments they are making to restrict access and use of common areas, especially in large, multi-tenant office buildings. “While some employees like working from home, others are far more productive in an office setting.” Calandrino also suggests that landlords should look into reducing the number of people within an office building at one time or adjust the hours of operations that may not necessarily benefit a business.

On the industrial side, however, the landlords don’t experience the same concerns in comparison to office owners. Manufacturing or warehouse spaces typically have fewer individuals working within them, which naturally creates a distanced work environment. And industrial tenants often operate businesses that are considered essential, making it a challenge for workers to work from home. Recently, Calandrino represented a manufacturing business that purchased a 50,000-square-foot facility north of Orlando, in Apopka. Fortunately, the business was growing, so instead of continuing to lease, the owner decided to buy instead. “We went under contract in April but weren’t able to close until July because of the changing COVID situation.”

Calandrino concluded the interview by referring to how business owners are managing their costs. “The No. 1 expense for most companies is their people. If they’re not productive at home, then they need to come to the workplace. At that point, the owner can consider whether leasing or owning makes the most sense.”

Read the story at length by opening the document below: