Posted on July 9th, 2007 by D. Scott Smith
I get asked this question almost daily. In short the root of the question is what is a good buy in the market right now. Most often the answer is not what anyone expects. Most people expect me to say what they have already heard around town. That is rarily what is the best investment in the market currently. Why? Simple. Supply vs. demand. As demand for the asset goes up, so do the prices, bringing return rates down. For example, multi-family properties. Right now in our market, they are HOT, too hot. The national average for a multi-family cap rate right now is 5.5%!!!! Still, I have more requests for multi-family units than anything. So I tell people to stay away from multi-units. As the condo’s can’t sell and get converted into multi unit rentals, you can expect pretty much the same. I mean the developers have to make some money some how right?!?!?!
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What commercial real estate is a good buy?
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Filed under: Industrial, Investments, Retail / Shopping Centers
Posted on June 10th, 2007 by Jeff Pasquino
If you are either new to commercial real estate or just looking to get in to the game, first of all, welcome.
Secondly, you’re going to have to forget some of what you learned as a residential investor.
Do you remember how you first started looking for houses to buy? Did you start to notice the vacant houses that you weren’t seeing before? Sure the board-ups were easy. Then came the ones with tall grass and newspapers that were 3 weeks deep in the driveway. Then came the broken shutters or window. Then you felt you could just “tell” that a house was vacant, even if these blatant signs weren’t as readily apparent.
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Filed under: Development, Investments, Land, Office Buildings, Retail / Shopping Centers
Posted on June 5th, 2007 by D. Scott Smith
Posted on March 15th, 2007 by D. Scott Smith
Six Tenants Sign in New Severna Park Retail Complex
For some time now the BWI / Severn / Crofton market has been in the cross eye for the next hot bed in the Baltimore / DC market. There are many planned retail developments and many that are currently under construction. We have seen many homes in the last 3-5 years being built and existing homes benefiting from high appreciation rates. The new population will need a place to work, shop, and have entertainment. The Severn / BWI / Crofton area is the place for this type development. What does that mean, buy land in Glen Burnie, Odenton, and surrounding communities, where population has grown as well as property values, but the retail componet is not yet reached the area.
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Filed under: Business News, Development, General, Retail / Shopping Centers
Posted on February 19th, 2007 by D. Scott Smith
With major retail expansion through the city is Baltimore set for a boom or bust? Is there still money to be made in the retail sector for Baltimore? As of 2005 there were a total of 988 centers for the state according to the 2005 shopping center census provided by costar. This represented a 1.66% increase with a 1.15% Gross leasable Sqft gain and a 5.55% gain for sales per sqft. 2006 results are not yet available. If retail is the final cycle in development, where are we headed? Are we over built? Is there enough sustainable income to support the wide spread retail developments?
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Baltimore City Retail BOOM or Bust!!????
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Filed under: General, Retail / Shopping Centers
