A nearly empty office building doesn’t always mean the building has lost its value. Sometimes it means the financing no longer fits the market.
David Moore remembers advice from one of his mentors, Bob Nelson, who believed real estate rewarded patience more than perfect timing. He often reminded investors that real estate isn’t a “get-rich quick” business. It’s a “get-rich surely but slowly” business, as long as you don’t end up in a position where a recession decides when you have to sell.
That perspective looks different when you’re standing inside a building that’s only about 10% occupied. The space is still impressive. The structure hasn’t changed. What no longer works is the debt service. A payment that once made sense can become impossible to carry, forcing owners to make decisions they never planned to make.
The next owner may walk into the very same building and see something entirely different. With a lower purchase price and financing built around today’s market instead of yesterday’s, the numbers can tell a completely different story.
Watch the full video to hear why David believes some of the best real estate opportunities begin when someone else runs out of time.
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