What is a key factor to consider when determining the price range for purchase of office properties?

When determining the price range for the purchase of office properties, understanding the potential for improvements is vital. This factor evaluates how much value can be added to a property through renovations, upgrades, or changes in use. Investors must assess whether the current condition of the property allows for enhancements that could significantly increase its market value and appeal to future tenants. By analyzing the potential for improvements, an investor can project the return on investment and set a price that reflects both the current worth and the enhanced value expected after improvements are made. This forward-looking perspective is crucial in making informed purchasing decisions in the real estate market.