It’s ok…
You can relax. The signs of tough times seem to be leveling out. Signs of recovery have been seen and forecast from many economist these past few months are on a positive note. It seems like the economy is finally starting to show signs of improvement to small business owners and entrepreneurs alike.
Stabilization is the pattern that we are starting to witness in the commercial real estate market. Vacancy rates aren’t increasing as much as previous years and lease rates are starting level-out. So, this is a perfect opportunity for Tenants to capitalize on low rents, before it starts rising again.
Currently in the market, there is a growing number of short sales and foreclosures. Economists expect this surplus of opportunities to decrease starting late this year and early 2011. This is when the economy is expected to rise back to its full potential. With that said, now is the time for buyers to attack and consider taking full advantage of the depressed commercial real estate market, while they still have the chance to obtain great deals . The depressed commercial real estate sales market means that Buyers actually have the opportunity of buying property for much less than it costs to lease it.
In 2008 and 2009, small commercial building owners suffered the most out of any other segment in the business world. Some property owners are still trying to come out of the quicksand, and are selling their property at a low, very low, prices. Some owners are even selling their properties for less than they owe. This is just another example of how entrepreneurs and active buyers can capitalize and upgrade or move into a new building for a cheaper price. Active buyers can move into a much nicer building, let’s say a jump from Class B or C to Class A for the same price; if not lesser than what their current office building is currently charging them. Most property owners believe that the market is still at a depressed stage, so they are willing to sacrifice and sell or lease their properties at a much lower price.
The biggest part of the commercial real estate market crash has passed, but some of the current buyers and tenants are still in a scared phase, because they don’t know what the economy has to come. We cannot make decisions in business when we are afraid or not thinking clearly. While most of the small business owners are hiding out; you can take advantage by jumping out and capitalize on everything from office space, to office infrastructure and super low prices.
So here’s the deal. You’ve weathered this nasty storm that we called a “recession” and now the sunshine has started to arrive. This is the time to take advantage of the commercial real estate market before more and more Tenants and Buyers become aware that the market is rising. Capitalize on low lease rates, short sales, foreclosures, etc. so that your business can see the top of the plateau that its never seen before.
If you have any questions we are always happy to help our readers :) You can reach us at (949) 790.3159
We will be so happy for the economy to fully recover. Thanks for the article.