|
With even the sub-prime mortgage crisis in home mortgages, available investment capital is at high levels, and demand for investment real estate continues to drive up prices. Suburban office buildings remain many investors primary acquisition target.
September 01, 2007 -- These investors reason that a suburban office building that can be purchased at a price below replacement cost has nowhere to go but up. Careful choices must be made as there must be a demand for office space in the area and a gradual increase in rents. Since rents have increased in most submarkets, the long-term demand for office space looks good.
Suburban vs. Downtown
Recovery in suburban office markets has outpaced downtown markets because the suburban markets began from a more disadvantaged position. Overbuilding during the 1980s was much greater in the suburbs due to the lower cost of land and the economic feasibility of constructing smaller buildings. Consequently, the national suburban office vacancy rate at the end of the decade was approximately five percentage points higher than the national downtown rate.
Construction and Absorption
The years of the nineties brought many positive changes in the U.S. office market. The biggest reason was the almost complete absence of new construction. Just 5 million feet of new space was delivered annually during this period, while absorption averaged 42 million feet annually.
Help With Investment Real Estate
When you have searched for new real estate investment opportunities, with values that have been changing, you know that finding and evaluating them is becoming more sophisticated and complex. More investors are turning to real estate consultants as a means of providing a sounding board for their ideas as well as expertise in the planning and construction stages for their projects.
Today's investor in real estate must have a grasp of market conditions and potential that is usually beyond their own available time to attain. Investors need assurance about the true condition of the market. With increased competition, the market place is becoming more complicated.
Feasibility studies are essential for commercial office, industrial, resort and hotel investors. With this kind of information, planning is better and there is less chance for error.
Real estate investing is not just looking for the structure and the land. It is investing in the type of property that you want at the price and terms that suit you at the time you want to make the purchase.
Our office is open and ready to assist you. We have been experts in property values in this area for a long while. We can help you with enough information so that you can make your own decisions on the value of property either in listing your present property for sale or in purchase of another. If you wish to consider structuring a tax deferred exchange into that next property, we can guide and aid you with that transaction.
Let us be your consultants. |
