As the New Year arrives, one of my resolutions is to listen better. Whether it is with my family, friends or business associates, you can never be too good of a listener. As well, it pays to listen to the media. Listening to the media for trends can help guide you on where certain markets are headed.
The headlines of stories can tell you a lot about where slow moving markets like commercial real estate are headed. Here is a snapshot of where the commercial real estate market was in early 2010 and where it ended up at the end of 2010.
The stories as reported by Costar Group getting the most press in January and February 2010 were noticeably negative.
- Betting on Bad Debt Becoming a Growing Investment Play
- Commercial Real Estate in 2010: Weak Fundamentals and Constrained Liquidity
- Risky Commercial Real Estate Lending Deadly for Banks
- Movie Gallery Files Bankruptcy, Closing 800+ Stores
- Capital Market Recovery Will Take Time
- Distressed Commercial Real Estate Assets Jump 15% at Nation’s Banks
- Shopping Center Receiverships and Foreclosures Usher in the New Year
At the end of 2010, the stories as reported by Costar Group getting the most reads in last two months were more upbeat and positive.
- Have Commercial Real Estate Prices Bottomed Out?
- Has the Commercial Mortgage Backed Securities Market Finally Turned the Recessionary Corner?
- Google Acquires One of NYC’s Largest Buildings for $1.8B
- REIT Execs Hail Rally
- U.S. Multifamily Market Strengthens in Third Quarter on Rising Demand, Falling Vacancy
- Falling Retail Rents Mean More Store Openings
- Surge in Growth at Apple Prompts 100-Acre Cupertino Acquisition
No one knows tomorrow’s news, but more important, no one knows how market participants will react to the news. You can’t make the market meet your expectations. You have to go where the markets take you. As the old saying goes “The trend is your friend”
As our economy continues to slowly improve, investors will get back into the commercial real estate market only when they feel more secure about the industry, and it appears to be happening now.
Darren Nakos, CCIM
Resort Realty Capital, LLC
111 Main Street
Frisco, CO 80443-0630
THIS IS NOT A SOLICITATION FOR INVESTMENT – THIS INQUIRY IS TO FIND OUT IF YOU ARE INTERESTED IN RECEIVING ADDITIONAL INFORMATION. NEITHER RESORT REALTY CAPITAL, LLC, IT’S AFFILIATES AND REPRESENTATIVES MAKE ANY REPRESENTATION REGARDING THE RISKS OF INVESTING IN COMMERCIAL REAL ESTATE. YOU SHOULD CONTACT YOUR OWN PROFESSIONALS TO MAKE THE DETERMINATION AND ASSESS THE RISK OF INVESTING. AS WITH ANY INVESTMENTS, THERE ARE INHERENT RISKS AND NO GUARANTIES OF RETURNS. PLEASE CONSULT WITH YOUR OWN PROFESSIONALS IN DETERMINING THE RISKS ASSOCIATED WITH INVESTING IN COMMERCIAL REAL ESTATE.