Commercial Real Estate Investors Stacking up Cash

I just ran across this article from the National Real Estate Investor – and it illustrates a few great points. In our brokerage, we are hearing more reports of investors organizing funds to acquire distressed commercial real estate. I’ve felt for a couple of years now that this will mark the bottom of the market, when investors feel that that prices have stabilized, credit is fully tightened, and cap rates are at their peak. We have buyers on hand right now, with a standing offer to purchase property at a 11-12% cap, based on the current income, at its current occupancy level. Before you scream how low that is – keep in mind this is a standing offer, cash, close in less than 30 days.

Its extreme pricing – but its real. It is the bottom dollar – and it is real money that you can have in 30 days, if your property is truly distressed. When you have a market conditions such as ours, this is encouraging. An investment group has stepped up and is willing to draw a line in the sand declaring that “X” is the minimum price for income producing property, and they will purchase anything that reaches that low price.

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Why Invest in Daytona Beach Commercial Real Estate Now?

by Tim Davis

So you own a television and a computer - and every time you turn one or both of them on, they instantly spew forth ideas that you should sit tight and keep leasing space for your business. Vacancy rates are on the rise, rents are dropping, banks are foreclosing on properties, distress sales are on the rise still, etc, etc. Well maybe your computer doesn’t “spew” this info - but your fax machine probably does.

The basic point is in order to by in business, you have to have space to conduct that business. Like it or not, you unless you are drop shipping infant toys you sell on ebay, you most likely need a traditional space to operate your business. This could be an office, read the rest of this entry here