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Bright(er) Horizon May 12, 2010

Posted by Sean Tufts in Articles, Research/Data, Retail News.

Below are two quick articles that I think are worth reading.  Most investors have been on the sideline attempting to time the market bottom.  The Puget Sound was slow to enter the recession and has proved slow to exit.  However, property values have significantly declined from their peak, in some cases 30-40%.  Does that itself mean we are at the bottom?  Who knows.  The good news is that rents have come down across the board, there is basically zero new construction on the horizon, and rates are still incredibly attractive.  CAP rates have made a significant swing and seem to be currently hovering around their historical averages. 

If you have a long term approach to real estate, now may be the time to capitalize.  Of course, we are in the business of selling commercial real estate so that’s how we make a living.  But seeing activity pick up significantly over the last 60 days, while banks start to come back to the table has created a general feeling that we are past the fear of the end of the world.  Now might just be the time to reevaluate a purchase.

Trend Czar – At Bottom

If you’re an investor and you’ve been waiting patiently, maybe nervously, for the market bottom of commercial real estate, we’re here. Well, give or take we’re here. For all that capital that we’ve heard about standing on the sidelines ready to jump in and buy bargains—you’re time is now. The risk of a further slide beyond the 40-50% in peak to trough value losses is greatly mitigated unless we’re talking about derelict properties at fringe locations.

Read more here.

Puget Sound Business Journal – Study: Seattle has nation’s best economy

A study by a Florida research firm says that the Seattle area’s economy is the best in the country.

According to Policom Corp., an independent economic research firm that specializes in analyzing local and state economies, out of the nation’s 366 metropolitan statistical areas, Seattle-Tacoma Bellevue rates No. 1, moving up from last year’s No. 12 ranking. In 2006, Seattle-Tacoma-Bellevue ranked No. 51 in the country. The company uses 23 different economic factors to create its rankings.

Read more: Study: Seattle has nation’s best economy – Puget Sound Business Journal (Seattle):





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