Commercial real estate investors should avoid purchasing office buildings with low occupancy unless the seller is willing to accept a significantly discounted price. Wise landlords are doing what is necessary to get quality tenants into their buildings and the investor will quickly realize that it will become rather expensive to re-tenant the building. In order to woo tenants, the landlords may have to provide several months of free rent, increased tenant improvement allowances, broker incentives, moving allowances and other incentives.
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