“Opportunities in commercial real estate can be found today,” said Terry Robinson, president of The Off Market Association. “And we have found that yields are often higher in the off market world."
San Francisco, CA (PRWEB) January 24, 2013
2012 was a year of recovery for many commercial real estate assets types and markets, such as multifamily housing and industrial. Investors are asking if now is the time to jump into commercial real estate.
Commercial real estate has recovered faster than the single family housing market, and with strong demand from overseas it is likely that this trend will continue into 2013 with the possible exception of office space.
Some good returns are being experienced by commercial real estate investors who have bought in the last few years (at the bottom of the market), as experienced by Off Market Association clients. Investment returns in commercial real estate should be better than the returns on other investment classes such as bonds.
“Opportunities in commercial real estate can be found today,” said Terry Robinson, president of The Off Market Association and Genesis Capital (a specialist in large commercial real estate dispositions.) “And we have found that yields are often higher in the off market world, where sellers are often discounting based on a need to sell quickly.”
The total returns in commercial real estate take into account gains from appreciation and capital gains as well as gains from net operating income.
Here are some considerations for potential investors in commercial real estate:
When it comes to commercial real estate, economists consider job growth to be one of the main drivers, especially when considering office space. Logically, the more people working, the more office space is needed to house the workers.
As long as job growth remains tepid, the demand for office space will also remain tepid. However, considering the lack of new construction in this space a rebound could happen very rapidly once employment ramps up. The lack of office space combined with a surge in demand could see rents and prices for existing properties increase rapidly.
Industrial real estate such as warehouses and manufacturing facilities are not as dependent on job growth. As long as manufacturers and other companies are doing well, the warehouse and industrial space can also do well.
Orders and shipments are increasing at a faster pace than employment, however the economy as a whole is expected to continue to be quite fragile in 2013. Concerns regarding government spending and the debt ceiling will drag down GDP in the first half of 2013, though the second half could fare much better.
The Off Market Association (OMA) assists buyer and sellers of commercial real estate; many buyers are hungry for product and opportunities, and many sellers want to sell as quickly as possible. OMA members facilitate this.
About The Off Market Association
The world is changing and has changed. Old ways of doing business don’t always apply. The Off Market Association (OMA) brings a new, exciting and visionary way to do business to all our members. 2013 should be a good year for both buyers and sellers, and should turn to OMA for dealmaking.
OMA uses a cutting edge technology and platforms, a deal desk, and extensive contacts across the US for commercial real estate transactions, bank note sales, small business advising and SBA loan services. The OMA is affiliated with Sunovis Financial and Genesis Capital to provide investors with access to capital and quick financing.