Sam Kartalis
Everyone is talking about a “double-dip” recession, but I’d like to think that feeling runs counter to what’s happening in commercial real estate. I’ve witnessed some good-sized land sales recently, along with a growing group of income properties closing, and I sense a trending upward.
As soon as single-family land sites hit the streets with realistic prices, they’re gone! And most of the in fill single-family sites have already been snapped up.
Single-family homes may be a laggard currently, but commercial real estate looks like a good bet for asset appreciation, especially when compared to stocks, bonds, and cash accounts.
For those reasons, I believe commercial real estate is reviving!
Sam Kartalis is president and chief operating officer of Henry S. Miller Realty Services LLC. Contact him at sam@henrysmiller.com.
2 comments
I am in completet agreement. We are a commercial real estate company based in Pensacola, FL and work primarily in Florida, Alabama, and Georgia. We too have seen a significant increase in Commercial Real Estate activity, including….yes….lending! The hot spots are definitely income producing properties with multi-family leading the charge. We have reports of properties trading in the sub 4% cap rate range to the institutional buyers. Also, with the volatility in the stock market, we have seen a recent influx of interested parties looking to put their money into safer “bricks and sticks” income vehicles. Demand is increasing, and due to the limited supply dictated by the credit crunch over the last couple of years, we expect to see continued value increases and a solid recovery in the commercial market.
um….what? were you trending drunk when you wrote this?