When it comes to buying commercial real estate there is invariably often five mistakes that many would-be buyers make. 1- Overly obsessive on yield: Too focused on a getting a certain level of yield or cap rate. I have seen buyers turn down a great deal because they want a 6.5 yield when the…
2014 and 2015 have been banner years for real estate transactions under the guise of 1031 tax deferred exchanges. With this strong performance the Washington politicians and the current administration alike have once again set their eyes on proposals to eliminate or put limits on exchanges. Politicians and governments in general see any form of…
With a new year upon us it is time once again for all of us pundits to have predictions for the upcoming year, so here goes my take for the SW Florida commercial real estate scene: LAND: As we have been experiencing over the past year or two, the availability of commercially zoned land…
The following excerpt is given by N. Edward Tamer, Senior Vice President of Grandbridge Real Estate Capital. Long term non-recourse fixed interest rates are priced on a spread over the corresponding 10, 15, 20 or 25 year treasury rate. As the treasury rates have moved down, spreads have increased significantly. 10-20 year fixed rates are now in the…
Dougall McCorkle represented a private investor in the acquisition of a 71,000 square foot office building in Gainesville Florida, which sold for $8.36 million. The building is a single purpose building that has a long term lease with New Media Group, the parent company of the Gainesville Sun newspaper. The property traded at just…
As insulated Americans most of us don’t realize that the currency rates have a bigger impact on our local economy than we may know. Since the fourth quarter of last year the European currency, the Euro, has dropped about 30% in value compared to the US dollar, now sitting at about a 12 year…
Interest rates for real estate are impacted by various factors with the primary factors being the global bond market and the interest rates manipulated by the Federal Reserve. Another determinant factor that drives interest rates is the spread that lenders charge their customers. That spread is the rate differentials between what lenders borrow money at…
The office market in SW Florida continues to march back to health. After several years of difficult conditions, the general office market in SW Florida is improving, at least from an investor’s point of view: higher rental rates, lower vacancy, and less concessions. For a complete third quarter 2014 report please click here. The…
November 4th was a big day of the Collier County Supervisor of Elections. Not only was it election day, but it was the day that the Elections Board closed on the purchase of a new building to call their home. The County purchased a 30,000 square foot industrial/office complex at 3750 Enterprise Avenue in…
Dr. Gary Jackson, of the Lutgert College of Business at Florida Gulf Coast University, has released their September 2014 report on “Southwest Florida Regional Economic Indicators”. The report includes the latest facts in trends on building permits, airport activity, labor, taxable sales, housing growth, population, and more. Click here for the report.