Investors are Running To Commercial Real Estate Again!
Commercial Real Estate investment – the Cinderella of investments…. Again
How has Commercial Real Estate become the Cinderella of investments again? With the influx of both debt and equity into all sectors of the commercial real estate market, prices are being pushed to pre-recession levels and investors are having to take lower returns in order to get into the market. This upward pressure on values is resulting in new construction now being more feasible. Just a few years ago the cost to deliver new product was not supported by values. The lull in construction has resulted in a tightening on inventory allowing Landlords to start to push rental rates (this has been happening in the retail sector for over a year and a half).
The U.S. market has been improving but is seems the producers, wholesalers and retailers of products are getting out ahead of an anticipated boom. With the anticipation of a change in the political landscape investors and stakeholders in the private sector will continue to take more risk anticipating the an opportunity to operate with less outside government turbulence and confusion.
Locally in Savannah, GA, the agents and brokers at PIER Commercial Real Estate Brokerage, LLC are having clients push to get in the mix on more competitive situations. Investors are starting to realize that there is now a run on quality which is raising the tide on values. The post-recession, well located, quality deals went quickly. Local and regional banks are looking to invest in quality property with quality borrowers again. PIER Commercial Real Estate Brokerage, LLC professionals are working hard to find opportunities that may not be apparent to the general market.