375. Why I'd Rather Buy an Empty Building Than a Full One Right Now

Vacant buildings = more upsideYou avoid paying a premium for someone else’s lease‑up work.You create value through rehab + leasing (forced appreciation), not just clip coupons.Stronger negotiating positionVacant = motivated seller; you have more leverage on price, terms, and concessions.Priced by $/sq ft, often at or below replacement cost.Cleaner from a legal/lease standpointNo legacy leases, estoppels, co‑tenancy clauses, or messy files to inherit.You set your own lease standards from day one.Market conditions favor existing vacant buildingsHigh rates + high construction costs = very little new supply.Low national vacancy (≈4–5%) = strong demand for quality space that already exists.Math can be dramatically better than stabilized dealsExample: All‑in at ~$928k vs. stabilized value at $1.85M → $900k forced appreciation.Vacant strategy can create multiples more equity than buying fully stabilized for cash flow.Vacancy risk must be planned forKeep 6–12 months of operating costs in reserve (or financed/raised).Underwrite 12–18 months to stabilize; don’t assume instant tenants.Brokers and data are crucialGood brokers (commission‑only) protect their time—bring serious deals and a clear buy box.Use them for rent comps, TI norms, free rent, and realistic lease‑up timelines.Strategy is for growth‑focused investors, not retireesBest for those aiming to build wealth and scale a portfolio, not live off immediate cash flow.Holding 3–7+ years lets you maximize NOI growth, tax benefits, and 1031 options.