Lately, the team has been working diligently to strengthen our database. We recently pulled owner-occupant versus investor-owned data across three asset classes in Onondaga County:
Industrial: 46% owner-occupied
Office: 21% owner-occupied
Retail: 17% owner-occupied
A significant portion of industrial properties are standalone buildings, making them easier for owners to purchase. Additionally, highly specialized industries often favor ownership due to their specific operational needs.
Office properties are the opposite. Standalone office buildings under 2,500 square feet are rare, and the alternative, larger multi-tenant buildings typically are not designed for owner users. Users end up leasing.
Retail is also predominantly investor-owned. Think of strip malls and downtown storefronts. Even standalone retail properties often involve ground leases or absolute net investor-owned structures.
This data signifies what I think is a healthy breakdown. Business owners often prefer to invest back into their business rather than purchasing real estate. On top of this the burden that comes with managing real estate can take time away from their business.
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