Just like all other property types, the valuation of some office properties can be straightforward with nominal interpretation of market forces required. In terms of potential complexity however, office properties are second only to retail. Who are the tenants, when do the leases expire, who has what renewal rights, who pays what expenses, what early termination rights exist, what is the likelihood of tenant retention?
These are but some of the issues that may exist in conjunction with any given office building. Of course many of these are not germane when dealing with owner occupied properties. However these can often present a different set of issues, particularly when the property in question is a ‘trophy’ or headquarters building designed for and occupied by a corporate owner.