What a Bargain

When I look at what most items cost now, and I think about what we paid for them when I was younger, most things seem very expensive (gas especially--there was a gas station near my high school boyfriend's house that was having a gas war with another station, and it was 16 cents a gallon!).  A few seem not to have gone up nearly as much, but I'll bet that New Haven commercial real estate ranks right near the top.

In the late 70s and early 80s, industrial real estate rates were around $4/sf, and today you can still find places for under $5/sf.  Office space in the 80s could go for around $20/sf, and you can find some in that range now.  The comparisons may not be building to building, but the value of today's pricing is clear, especially when you look at the expenses added on.  Taxes, insurance, and utilities are vastly more now than they were then, and can dwarf the actual rental payment.

So, if you are, like I am, getting to the point when you are in danger of sounding like an old coot when you talk about the "good old days", don't forget to think about real estate prices.  You'll sound current instead!

Lenders More Bullish on Commercial Real Estate

We have clearly seen recently that there is much stronger demand by users for real estate of all types. What's been holding people back, in many cases, is the feeling--or reality--that they cannot get financing.  That was driven in part by the huge amounts of capital tied up in notes of various types that came due in the last couple of years.  For whatever reason, or a combination of reasons, that seems to be changing.

Reports in all kinds of publications have been saying that lenders have a greater appetite for commercial real estate loans.  That would make sense, since we all think that the market, and the values, are improving. What that means is that prices will soon start to rise, as activity climbs and users look for product.

What does that mean for buyers?  Buy now, before supply dries up and prices increase.  What does that mean for sellers?  Good news.  Your properties just got a whole lot easier to sell!