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May 25, 2012, 12:04:18 PM

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Real Estate Investing Forums  |  Real Estate Investing  |  Commercial, Mobile Homes, Self Storage, Notes, Land Forum (Moderators: $Cash$, Bluemoon06, kdhastedt, Mdhaas, motivatedceo)  |  Topic: The Institute of Commercial Real Estate « previous next »
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HRD prez
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« Reply #15 on: May 13, 2009, 10:10:19 AM »

In case no one has noticed, the majority of commercial markets are in the crapper outside of apartments.  Values have declined significantly  and we haven't hit bottom yet.  Lenders aren't lending even to financially strong buyers.  Who are you going to assign to?  Who's going to buy if the market is still dropping?  You shouldn't be surprised if many of these "gurus" disappear until the next real estate boom.

These are all valid points but I think it depends on the part of the market you in.  Lower end [retail] markets are starting to pick up lately - it's the big guys that over-leveraged that are in the most trouble.  They have more exposure to consumer spending (and therefore big box closings) than little guys who stick with neighborhood retailers.  You also have differentiate types of commercial properties as well - office space is in the toilet just about everywhere.

To the earlier point of market entry, yes it is harder to enter commercial than residential real estate.  The risk is higher also but so are the returns - you don't get one without the other.  Commercial is a different animal but a lot of the basics still apply.  Lenders have raised the bar on financing but there is still money out there if you have a demonstrated track record and can demonstrate good cash flows.

I don't see 18k being worth the expense.  You can learn more from a realtor or banker friend.  Networks are important in commercial real estate.
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artyman1200
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« Reply #16 on: May 13, 2009, 04:02:31 PM »

Yes, it depends on the market and the deals you find.  And yes, many investors have filed bankruptcy due to overleveraging and "credit" tenants going out of business.  However, unless we're talking about a low end shopping center with rents at $4-$8/S.F. be very careful.  Vacancies are increasing in most sectors in our market, and our market is consisitently stable.  Good local lenders are still lending on deals that make sense. 

The verdict is not yet out on where the bottom of this decline will be...

I appreciate your comments HRD.  It sounds like you have some experience.
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Real Estate Investing Forums  |  Real Estate Investing  |  Commercial, Mobile Homes, Self Storage, Notes, Land Forum (Moderators: $Cash$, Bluemoon06, kdhastedt, Mdhaas, motivatedceo)  |  Topic: The Institute of Commercial Real Estate « previous next »
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