Why not?
I actually likes professional office buildings like doctor and lawyer offices. Maybe not lawyers. Don’t want to get sued for no reason. Doctor offices seem solid.
For risk management. If it’s a smaller percentage of your portfolio, you can handle the vacancies and recessions. But if it’s a large portion, a recession and long vacancy may devastate your portfolio.
I know nothing about offices. So take my words as what it is.
There’s little doubt demand for medical space will increase. That seems like one of the more solid bets. I’m not sure how different the zoning and building requirements are for medical tenants though.
I heard that doctors are facing too much competition from large medical group. Maybe someday small Doctor offices will be vacant and they all go to work for Sutter.
Probably a good move for cost control. Economy of scale.
All my rentals overall have appreciated about 75% from purchase price. So that will bring that number down to about 3.5 
That’s sad. Even CC now delivers only 3.5% cap rate. That’s a negative cash flow for today’s investors
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Pittsburg and Antioch should be higher than that. I have some high end homes that really drove down the cap rate…
This one is 8.4% CAP (claimed). Seems like a good one. The residential rents are below market so shouldn’t need to worry about vacancy. The area is up and coming but still relatively close to lake.
https://www.redfin.com/CA/Oakland/1619-International-Blvd-94606/home/143418039
Office caps should be 7-8-% highly volatile and risky compared to residential…
Not that I can afford them, but in general not a fan of houses built on landfill.
Who is? That is why I like to buy in the hills…If the streets are curvy, chances are you are in the hills on rock…
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Some people overlooked this issue because they put heavier weight on something else. Not me.