Wow! What a year 2022 was: our exact description for 2021, but for very different reasons. In all our years in commercial real estate, the last two have been the most extreme.
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Wow! What a year 2022 was: our exact description for 2021, but for very different reasons. In all our years in commercial real estate, the last two have been the most extreme.
Last week we started our series on Getting Unstuck from your current space, and we promise to get back to you with more ideas on how to get more out of every occupancy dollar.
But, we step away from that topic this week to bring you some interesting and potentially good news, which given all that’s going wrong these days, we thought you might appreciate.
Last week we expressed the importance of a “real estate check-up” to make sure your real estate investment strategy is aligned with the significant changes in market conditions we experienced in 2022.
Until recently, market valuations and rents were headed in one direction-UP, but the weight of inflation, rising interest rates and lingering effects of the pandemic are now pulling in the other direction, just as gravity grips a rocket that runs out of fuel before reaching orbit. That has business owners like you scrambling for ideas on how to maintain profitability under increasingly difficult circumstances.
Few would challenge the wisdom of getting regular medical checkups to preserve your health or servicing your car to make sure it is properly lubricated and functioning normally. Well, we think the same logic also applies to your role as industrial property owner.
For the past 10 years, industrial property values have been on a tear, setting new records with every sale. But the market finally hit a cyclical apex in Q3 at a price point double that of the previous peak in 2007.