Office Building for Sale -- Zoning allows Residential Use

My newest listing is a 14,106 SF office building in Yucca Valley, California.

Visiting the Planning Department of Yucca Valley, I discovered that the city permits residential use of the property, including mixed use, residential care, and condominiums.

Hmm, is it a better investment as residential than as office? Maybe.

• Class C office rents in Yucca Valley appear to be under a dollar a square foot, modified gross (the landlord pays for the expenses of the building). 
• Apartment rents appear to be over a dollar per square foot.

• Vacancy for office appears to be ten percent, maybe a little higher for Class C properties.
• Vacancy for apartments in the region appear to be two percent. There are no ads for rent concessions or move-in specials.

 Changing the layout of the building from office to residential is not rocket science, but it costs money and takes time.  The property is for sale for $54 PSF, with an acre of land, so it might actually pencil out....