Market Information

Summer 2011

The IC & I Market has been affected substantially over the last two years. The overall result is an awakening from Sellers and Landlords to the realization that prices had simply risen to a level that was unattainable for Buyers and Tenants. The result is that smart Landlords created less expensive products and reduced rents, thus allowing Tenants to maintain, or build businesses in a slowing economy. Savvy land and building owners arrived at the same conclusion, either reduce prices or hold until the economy changes.

For Individuals considering getting into the Real Estate market, now is likely a key opportunity to make those acquisitions, be it in land or buildings. There may be a gap between making a purchase and finding a Tenant, or changes could occur as quickly as they turned in the opposite direction in late 2008, and prices could increase. If one's Purchase is based on a cap rate, lower cap rates in today's market should increase as future land and building prices inevitably increase, thus putting pressure on lease rates. It is always wise to look at the local competition in a particular market, as oversupply of buildings can affect the market prices.

In any event, now would be a wise time to investigate all Real Estate options.