Just like any investment opportunities, there are positives and negatives, as well as potential risks and rewards to purchasing vacant buildings. If you’re considering vacant buildings for sale in Cleveland, Ohio, start here for some guidance.
Cons of Investing in Vacant Buildings
First, let’s look at the pitfalls. Vacant buildings may present challenges in terms of the time, cost and effort to repair and renovate both the interior and exterior of the building. After all, vacant buildings are more likely to experience vandalism than occupied buildings are. While damage is not a given, there is a chance an unoccupied commercial building may lack the ongoing maintenance and upkeep required of a building that’s occupied by tenants.
Vacant buildings also lack one of the biggest attractions that come with investing in commercial property: long-term contractual leases. Long-term leases provide stability and income assurances for investors, limiting financial risk to a certain extent. It can be challenging to start or expand your real estate investment portfolio without the security of a long-term contractual lease.
Pros of Investing in Vacant Buildings
Next, let’s consider the positives of investing in vacant buildings. The No. 1 advantage is cost. Real estate investors looking to land a great deal may want to consider a vacant property search.
Why are vacant properties typically less expensive than occupied buildings? First, they don’t benefit from the value and stability provided by an aforementioned long-term contractual lease. Next, they became vacant for a reason, meaning there is some known or unstated risk associated with the building, whether it’s the age, upkeep, design, location or other factors that may bring down the value and potentially motivate the seller to offload the property. Finally, vacant buildings will almost certainly require repairs or upgrades, and the capital that goes with them, to get them back into shape.
Like so many things in our daily life, the COVID-19 pandemic has affected the commercial real estate market, including the supply of vacant buildings. Some property types are rising in demand, while others are receding. For example, industrial and data centers have performed better than retail, office spaces and apartments.
With all of this in mind, vacant buildings for sale in Cleveland, Ohio, can be a fantastic opportunity for investors to take advantage of lower prices in prime locations. Consider the following properties, presented by CRESCO, Greater Cleveland’s leading commercial real estate company.
Vacant buildings for sale in the Cleveland, Ohio, area
29125 Hall Street, Solon
Size: 50,660 square feet of industrial space; 16,330 square feet of office space
Primary use: Industrial
This industrial building with office space is located on just over 5 acres and zoned I-2 in the city of Solon. It features five drive-in doors and three cranes with hook heights of 16-17 feet. The power capabilities are 480/270V/3phase/1600 amp.
6512 Carnegie Avenue, Cleveland
Size: 34,620 SF
Primary Use: Redevelopment
Located on 1.20 acres with fenced lot, this building includes four drive-in doors and 25 surface parking spaces available (expandable). This building is an excellent opportunity in the heart of Midtown
1623 E. 45th Street, Cleveland
Size: 18,809 SF
Primary use: Warehouse
This warehouse building boasts an excellent location just outside of downtown Cleveland and a large fenced-in parking lot on the west side of the property. It’s the perfect space for overflow storage or redevelopment. It’s just minutes from I-90 and State Route 2.
To learn more about how CRESCO, Greater Cleveland’s leading commercial real estate company, can help you with your property needs, contact us at 216.520.1200, or fill out the form below. A CRESCO professional will contact you shortly.