Local Market Forecast Discussed at Meeting of Institute of Real Estate Management
At the annual economic forecast meeting of the local chapter of the Institute of Real Estate Management (IREM) on February 28, members received encouraging news about the state of commercial real estate on the Central Coast, particularly in the multi-family (apartments) sector. Steve Golis, Brian Johnson and Jon Standring of Radius Commercial Real Estate & Investments delivered an overview of apartments and commercial sales activity through 2011 and discussed projections for the local market during the remainder of 2012.
Among the highlights of the morning discussion, Radius partner Steve Golis pointed out that many investors looking for return in the current down economy are turning to apartment properties. “The bottom line is right now it’s easier to obtain financing for apartment properties versus other commercial real estate.” He said that historically low interest rates and heavy competition among financiers are working in investors’ favor, making this a good opportunity for those looking for starter investments, for example, to finally dip their toe in.
In addition, Radius general manager Brian Johnson offered cautious optimism about the commercial real estate market in general. “No doubt there have been numerous challenges in commercial real estate over the past few years,” he said. “But all signs are pointing to a slow recovery underway across all sectors.” Johnson also pointed to an interesting trend on the commercial side that has continued from 2011 where business tenants, when possible, are finding it beneficial to purchase rather than lease. “Many business owners are not aware that they have options if they’re willing to put in the time and resources.”
The 2012 South Coast Multi-family and Commercial Market Forecast was attended by local property management companies, leasing brokers and agents, apartment managers, appraisers, contractors, and commercial and multi-family vendors. Proceeds from the annual event hosted by IREM local chapter 102 are donated to the IREM Foundation. The nonprofit IREM is an international community of real estate managers across all property types dedicated to ethical business practices and maximizing the value of investment real estate and is the only professional real estate management association serving both the multi-family and commercial real estate sectors.
“The Radius team gave a clear picture of how the markets are going and should continue to go in the coming year,” said IREM board member and past president Janet Eastman, CPM, of Gardner Management, Ltd. “We rely on the expertise and collaborative spirit of our membership to improve and benefit our industry as a whole.”
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