Lots of Hits

For all that Connecticut is being labeled as the place to leave for doing business, we are getting lots of inquiries about our listings.  In fact, "commercial real estate" is the number one thing that people Googling Pearce type into their search line.  We also get as many Ready Chat leads (those who talk to the little person who appears on the screen when you get to our site) for commercial real estate as we do for residential.  Since that doesn't correspond to what the general impression of the state of the commercial market is, I thought it was worth passing along.

People looking at properties on LoopNet are also a big source of leads for our commercial agents.  Those who search through LoopNet can be either local or not.  While calling or emailing about a property is obviously not the same as buying it or leasing it, and not all leads result in sales or leases, it's a promising start.

So feel free to join the crowd, and look for us at www.hpearcecommercial.com. 

Current Absorption Rates

Explanation of absorption rate: The rate at which available homes are sold in a specific real estate market during a given time period.  If you look at the number for Wallingford you can say “If market conditions do not change and if no new listings come on the market it will take 7.2 months for the current inventory to sell at the current pace of the market.  A balanced market’s absorption rate is typically between 5 – 7 months.”

Click on table to zoom in

Time to Pull the Trigger

One thing that people have been saying about commercial real estate for ages now is that "buyers and renters are looking, but no one is pulling the trigger".  Some of that is because of real and unfounded fears about the economy, some around here is about Connecticut as a place to do business, and some is just the normal foot dragging, exacerbated by the sense that whatever space they might be considering will still be available when they get around to making a decision.

Because this has persisted, there now is a shortage of certain kinds of space and buildings.  So it actually may not be true that it will still be there when a buyer finally decides.  Also, as we all know, there is quite a lag time between signing the contract and closing, and often as well between closing and occupancy (or optimal efficiency).  Therefore, if you have plans for 2015, and they involve increased production, increased distribution, increased employment, or increased sales, now is the time to be pulling the trigger.  It's closer than you think!

Increased Activity Continues

Well, I was hoping that Pearce was outperforming the market, and I personally still think that we are, but our commercial agents are reporting that they hear that most agents in our area are busy.  Most are significantly busier than last year at this time.  We are up in closed sales by six times last year.  Even if we take out the biggest sale we've had, we're still up almost triple.  It's really getting better, folks.

Of course, there are always storm clouds on the horizon, and uncertainties everywhere, but we're feeling good about the future, and that seems so strange that we are enjoying every bit of it!

More Good News about Commercial Real Estate Activity

We just looked at our booked sales through May and compared them to last year's numbers.  We are 325% over last year at this time!  Even taking out our biggest sale leaves us way up from 2011.  It's unusual for commercial sales to rebound with or before residential, but that does seem to be happening.

There will still be time to buy or lease before prices really start to rise, but that time is clearly coming, since very little was added in the way of new space in the past decade.  So, if you have space needs, fill them now, or don't complain when you can't do it, or do it at the same price, next year!

Office Space Update

CoStar, our national research tool, has found that the rebound in large company profits and sales is beginning to  expand to smaller employers.  Nationally, office space use is creeping up, and vacancy rates--already low due to lack of construction in recent years--are low.  This is in marked contrast to what we have been seeing in the past couple of years.  In our region, we have been noticing a bigger number of startups, maybe a natural  result of people being laid off from their jobs, but also a sign of confidence in the future of industry here.

If you are a tenant, now is the time to renew, expand, or lengthen your lease, before concessions disappear and landlords look to recover some of what they've given back recently.  If you are a landlord, good news appears to be around the corner.  And not a moment too soon for us!

First Entry

Welcome to the new and improved Pearce Commercial Real Estate Website, and to my commercial blog.  While I have been blogging for a long time, this is my initial foray into exclusively commercial material.

It's always an interesting feeling to be writing in cyberspace.  You have no idea who, if anyone,  is reading what you post.  Nor do you know, unless they contact you, what they think of what you say.  That's my way of saying that I'm going to write about whatever occurs to me that I think might be useful or relevant to the potential audience, and I would be delighted to get feedback from reader about potential future topics.

By way of introduction, Pearce Commercial Real Estate covers most of Connecticut, largely excluding Litchfield and Fairfield Counties.  We do sales, leasebacks, leases, exchanges, and buyer brokerage for industrial, office, retail, and investment property.  We also have a large residential department, and joint ventures in appraisal services, insurance and mortgages.  We see the market from the "boots on the ground" level, and get enough industry material to also get the view from 10,000 feet above the ground.  I will try my best to balance those two perspectives, and hope that you will find this site useful.