We maximize the value in your industrial real estate transactions
Last week we began to take a look at the alternatives for property owners who purchased their assets more than 15 years ago.
These are the investors who have the most to gain by selling their properties, but realizing gains through a disposition also has its costs and complexities that deserve full consideration before a decision is made.
This week – two more alternatives that make good economic sense for many investors.
The Orange County industrial real estate market is still on a bull run that began back in 2010 as the US economy began to recover from a systemic failure in the financial sector.
It seems like not so long ago we were bumping along a bottom and wondering whether or not the good times would ever roll again.
Well, the good times have been better than any of the experts would have thought, and the prolific run has sent investors, owner/users, tenants and buyers back to the drawing boards in terms of their real estate strategy for the future.
After falling nearly 40% by the end of 2009, we were dubious of the prospects that industrial property values in Orange County could exceed the previous market peak.
But, after years of recovery spurred in part by a massive monetary stimulation by our central bank, here we are. Pricing levels have blown through the peak of 2007 and they are still on the rise.
Why is this so and when will it stop? Good questions.
The old saying: “it’s miserable, but it’s home” has taken on a new meaning in these times of short supply.
In other words, many are facing a commercial lease renewal in the near future.
For the past five years, interest rates for industrial property loans have been the lowest since Eisenhower was President.
For the past two years, commercial real estate experts have been predicting the end to cheap money and a rise in mortgage interest rates, but here we are, still waiting for even the slightest increase.