On the national level, the industrial asset class is white hot right now, experiencing record low vacancy rates and significant sales volume on both a local and national level. Sales volume has also started to pick up due to a severe shortage of new starts (although there is a vast amount of new industrial construction underway which should alleviate some of the pent up demand in 2016). If you own or wish to lease industrial property here in either Whatcom or Skagit County, there are both opportunities and issues to be aware of. This article is based on an August 2015 talk given by René Circ, Director of Research – Industrial, and Manager of Industrial Portfolio Strategies at Costar, the commercial real estate industry’s leading provider of information and analytics. (more…)
Monthly Archive: August 2015
This is a market update from the Winter 2015-2016 Real Estate Report, put out by the Counselors of Real Estate, a Chicago-based organization that publishes scholarly articles each trimester by national thought leaders. The goal is to provide expert opinion on the most important issues impacting the US real estate market, to facilitate better decision making for real estate investors, brokers and advisors. The perspective below was provided by Noah Slayze, a former commercial real estate appraiser and 2015 CRE chair and guest speaker on the August 6, 2015 Commercial Real Estate Show. (more…)
All real estate investors want to force equity, and you don’t have to be a developer to cash in on some great forced equity opportunities here. Investors seeking pre-existing, cash flowing apartment buildings can also force some substantial equity in seventies and eighties constuction.
It’s the classic model: buy an older building which is being poorly managed, with below-market rents. Typically it will sell for a higher cap rate because of these problems. Make some interior improvements, and get the rents up to market rate as the units turn over. Any smart investor will do this, but this equity takes time. (more…)