Interest rates are affecting current and future real estate deals. Here are tips to help real estate investors and developers navigate this challenging market. The global economy has been greatly impacted by volatile interest rates. Record-high inflation has taken its toll on businesses and consumers worldwide and to combat these extreme circumstances, central banks have swiftly tightened their...
Commercial Property Investment
In the past several years there has been unprecedented demand for industrial and warehouse space in the Twin Cities real estate market. With lower land and labor costs and strong growth in areas surrounding urban centers, there has also been movement on the part of industry the past couple decades to relocate from cities to the suburbs. The result has been the establishment of industrial and office parks....
2022 wasn't a great year for investing. With a weakend economy in recent months the stock market fell 16% year over year and took several dips into bear market territory. The real estate market didn't do much better. Median home prices reached their highest point in history, then started to decline as home buying slowed and inflation and mortgage rates rose. Due to high prices, the rising cost of...
In a market with uncertainty in stocks, cash and other alternatives, real estate may be the safer investment. Interest rates have rapidly increased over the last few months and investors are carefully watching as they are a critical factor in leveraging returns. At the start of this year, rates for real estate investment were between 3.5% and 4%. As we move toward the end of the year, we are seeing...
Absorption, or absorption rate, is a measurement used in Commercial Real Estate (CRE) to indicate the difference between the amount of space vacated by tenants over a period of time and the commercial space tenants have moved into within a geographic area and time frame. To put it simply, absorption is the rate at which commercial space is “absorbed” (sold or leased) over a specific period of time in...
Owners and property managers must watch their operating budgets and the dollars spent on the property. Save one dollar in operating costs and (assuming a 10% cap rate) value of the property increases by $10. That is why owners are always looking for new ways to economize. In addition to saving money, we are always looking for a way to invest a little in the property for a good return. A well-planned...
Lease Negotiations With A Negotiation Team In the past, corporate managers and business owners frequently were able to make major real estate decisions on behalf of the business on their own. Now, a negotiating team will often be used in negotiating leases. This team may consist of legal counsel, finance department representatives, outside specialists such as real estate brokers or tenant...
When representing a seller of commercial real estate, we determine what type of buyer is most likely to be interested in a particular property as soon as possible in the marketing process. We then focus the appeal of the property on those features that are most important to that type of buyer. Normally there are three types of buyers for commercial property: Investors, who seek an income-producing...
Commercial Real Estate Investing featuring Jon Whitcomb on Cover Your Assets ESPN (1500 a.m. radio) Saturday Mornings from 8-9 a.m.CST Jon Whitcomb, President and Owner of Metro East Commercial Real Estate, joins Todd Rooker to discuss best strategies and practices for commercial real estate. Listen to the podcast - 2/29/20 Cover Your Assets: Commercial Real Estate...
With the start of the new year you may be asking yourself which way is the right way in real estate investments in 2020. What is the future in these investments? An answer to these questions can be an interview with an interested professional real estate broker who can act as a real estate investment counselor. Each prospective investor can be interviewed in depth to find out specific needs in an income...