October 25, 2012 -
Spotlights
The industrial sector in Southeastern Massachusetts is showing signs of strength, as there have been more spaces leased up and absorbed during this recovery period, than vacant during the recession. Office leasing also seems to have a positive absorption. These supply and demand factors continue to push the vacancy rate for office space lower and rents slightly higher, certainly an encouraging sign, as the office market has been very soft over the last five years. Multi-family properties continue to keep investors interested and active, however retailers are still closing locations and struggling with the consumers ability to support retail. What does this all mean?
The commercial real estate market is experiencing big shifts. In this type of dynamic atmosphere, a slow recovery remains fragile and a commercial real estate investor remains cautious. Both owners and investors often question the sustainability of their own investments and ponder the thought of the ever dreaded red ink at the bottom of the P&L statement. But it is fundamentals that seem to keep commercial real estate investments on track. Preparation is always a key component to success. Remember the 5 P's? Proper Planning Prevents Poor Performance. With preparation an investor has the ability to control the investment, by monitoring it's sectors cycles, like those of the stock market. It is precisely these trends that we can analyze and begin to understand our commercial real estate investments and navigate accordingly.
A good commercial real estate broker, like a CCIM (Certified Commercial Investment Member), can be a key attribute to an investors toolbox. Due to a CCIM's extensive understanding of Industry shifts, lender focal points and niches within that industries market. On any good team, communication is a key to success. Staying connected with market information and savvy lenders, allows investors to give themselves a fighting chance in this ever-changing environment. A CCIM will use technology to adapt to these changing markets, which gives the CCIM a greater ability to serve their clients. Social networks like LinkedIn, Facebook and Twitter can also have great attributes to commercial real estate investors, because of the fast-paced transfer of information. And information is power.
Anticipation is a skill. Market analysis is an art. And focus is found through determination. A CCIM has all three of these skills, to anticipate moving markets, through artful analysis, while having a hard-line focus of the investors bottom line.
So, what does this CCIM see? A presidential election, just weeks away, with results that will undoubtedly impact the overall economy, specifically commercial real estate, through tax structure and potential plans for job creation. And a stock market that has shown signs of promise, domestically at least, over the past 24 months. This improvement in domestic capital markets, more specifically in the banking sector, will drive the availability of financing. Hopefully, waking up the "sleeping bear" we call the commercial real estate lender. And maybe, just maybe enticing their appetite for finding new commercial real estate assets to finance. Call a CCIM today to help you with your next investment move.
Tony Baldwin, CCIM is a principal at Baldwin Realty Group, Carver, Mass.