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When will Commercial RE finally collapse? They have been saying this before, and I dont think it has happened yet because they say it will be catastrophic, and I dont think we have had any catastrophes of late.
Commercial real estate collapsed along with the rest of real estate and the bad economy. Businesses went backrupt and abandoned leases, rents went down, vacancy rates went way up, sales prices of commercial real estate went way down.
Real estate is very local. Perhaps you live in an area that saw no effect from the economic downturn? Commercial real estate was badly hit in my area. Some commercial was giving 6 months free rent to sign a 10 year lease. Buildings are still standing vacant. Prices on the properties that sold were about 1/2 of what they were before the crash, if they could be sold at all. The banks foreclosed on a lot of commercial real estate, and especially on bare commercial land, which is all still vacant
You missed the boat on this one, Commercial Real estate already collapsed and is beginning to recover now. You didn't notice any vacate stores in the mall? New medical buildings just completed with zero tenants? Half empty strip malls? Where do you live in New Jersey anyway?
I live in Queens now. I have not been to Jersey in like two years. I have been out to Long Island this whole time, and I have not noticed vacant stores in strip malls. In fact, the strip malls are doing well here. The put up a new one in Carle Place next to the Walmart, and it is packed now.
I have seen some empty storefronts, but nothing too much, and even with I have not noticed too much suffering and misery.
Also I kind of figured that along with a collapse in Commercial RE would be landlords of the commercial properties foreclosing, or having to short sale, and then my boss and I would gobble it all up at cheap prices.
Well obviously I am talking to you people, so I havent gobbled up anything.
Also I kind of figured that along with a collapse in Commercial RE would be landlords of the commercial properties foreclosing, or having to short sale, and then my boss and I would gobble it all up at cheap prices.
Owners of commercial properties tend to have more money and resources than families living paycheck to paycheck. So there wasn't the kind of foreclosures and short sales in the commerical market that was seen in the residential housing market. There certainly was some, but definitely not to the extent the housing market suffered.
Commercial realestate has been doing great for us. We have been acquiring it. Well, I wish I had personally been acquiring it. For work though it has been great. Prices have been flat for a while now and plenty of empty buildings. Four years ago we were looking into building a free standing data center. Someone at the meeting mentioned, wouldn't it be cool if we could find an empty data center and not have to build one." Guess what we found a 50,000 square foot center. We purchased 3 blocks of property for our new hospital building project, a 325,000 square foot 6 above ground floors and a full basement project that will finish up in March of 2015. We were also able to acquire 8 other buildings a few blocks from the hospital that we will use for a redevelopment program. In other parts of the county our clinic system has grown as we found favorable lease options for medical clinics.
Commercial realestate has been doing great for us. We have been acquiring it. Well, I wish I had personally been acquiring it. For work though it has been great. Prices have been flat for a while now and plenty of empty buildings. Four years ago we were looking into building a free standing data center. Someone at the meeting mentioned, wouldn't it be cool if we could find an empty data center and not have to build one." Guess what we found a 50,000 square foot center. We purchased 3 blocks of property for our new hospital building project, a 325,000 square foot 6 above ground floors and a full basement project that will finish up in March of 2015. We were also able to acquire 8 other buildings a few blocks from the hospital that we will use for a redevelopment program. In other parts of the county our clinic system has grown as we found favorable lease options for medical clinics.
Yeh, I wish I had "personally" been acquiring mee self as well. With Obamacare kicking in I guess everyone thinks healthcare will definitely be paid from now on.
Yeh, I wish I had "personally" been acquiring mee self as well. With Obamacare kicking in I guess everyone thinks healthcare will definitely be paid from now on.
We are a bit scared of Obama care. Hospitals take it in the shorts with his program. Still that does not change why we are in need of buildings or growth. In California all hospitals have to meet earthquake codes that require the structure to withstand a major earthquake. We found it more cost effective to build a new from the ground up hospital than to rebuild our current 1960 era building. IT within the healthcare industry has also changed. Nearly everything is done electronically now, Xrays, medical records, lab results, charting, purchasing, inventory, and just about anything else is done online. To meet that growth we had the need to buy a data center. One of the strong points in commercial realestate is medical office space. With an aging society the need for medical care is increasing. Include a heavier and unhealthy lifestyle among the nation and the need increases for ading onto the health system nationally. When I started here 15 years ago we were a 1 hospital 2 clinic system. Now we are a 2 hospital 12 clinic system that also manages Doctor offices, and is co-owner in a multi site Imaging center.
With the government printing money like the worlds coming to an end, people are scrambling to find something tangible to invest in. Real Estate is looking pretty good in comparison to some other investments.
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