SF Building Sell or Rent?

[SF_guy2000]

Hello all,

My father has a building in SF that he has been trying to rent out to local business for a couple months. He's owned the building since the late 80s, well before the huge tech boom that has come to the Bay Area. He was offered $3.5 million to buy the building. As it stands right now its valued at just over $3 million. He and I have absolutely no idea what to do or how to proceed. He was never planning on having a buyer come forward and he would rather keep the building and rent it out, but the offer is very enticing. We want to think long term and are wondering if it's smart to sell now or rent and hope the property increases in value over time and maybe sell later. He knows that if he does sell the building he would want to reinvest the money in another property or buy a house, but the market in SF right now is a little ridiculous, so we're sort of stuck. Any help would be appreciated!

[SBuck]

What kind of property is it? Is it presently fully vacant or what is the gross occupancy percentage? Is there a mortgage on the property still? Long term what is the goal of holding this property and why?

[SF_guy2000]

The property is just a vacant building. My father had been using a small office space he remodeled himself, but the rest of the building is completely vacant. it's more of a warehouse type, he's a contractor and so he used to utilize the space for employees to hold equipment etc. There is still mortgage on the property. The long term goal of holding the property is that the area around it has been developing incredibly rapidly. Two apartment complexes have been built around the property and were hoping to keep it as long as possible.