Four Types of Investors Are Buying Commercial Real Estate
Posted by dan wagener on Fri, Mar 11, 2011 @ 03:38 PM
Who is Buying in 2011?
1. The first group of commercial property buyers were sellers in 2006-2008.
2. The second group are high equity, low leveraged, long-term holders who have been sitting on cash for years.
3. The third group are investors getting out of the stock market and are purchasing investment property in the range of $500,000 - $5,000,000.
4. The last group are buyers of bank notes. Lenders deal directly with them as they are typically the preferred customer at the lending source.
In short, 2011 will remain challenging. Tenant retention and sound fiscal management is still the key to surviving this downturn. Owners must know more about their property, the submarket, leasing activity and cost management than ever. Expect to be grilled on a regular basis by your lender. Just be armed with information. Lenders want to believe you are the expert.
Rents have fallen. Values have fallen. Opportunistic buyers of investment property have stepped into the marketplace and are making their moves. Some of those early movers have been richly rewarded, but I can assure you that 2011 buyers will be equally rewarded by making prudent purchases. As the recovery progresses rents and occupancy levels will begin their cyclical climb.
Most Popular Property Type ?
Single tenant, net leased properties with eight or more years remaining in the lease. If properly priced, they move quickly.
Wagener Equities Commecial Real Estate Services has the resources and knowledge to help real estate investors buy, sell, lease and manage their real assets in good times and bad. Give me a call anytime to discuss your real estate invesment,
Best Regards,
Dan Wagener, SIOR, CCIM
(847)816-2621
dwagener@wagenerequities.com