My New Blog

Yes, there really is such a thing and it has remained "the gold standard" for years.  In my career, I've seen the price of property double every ten years.  No, I don't have a crystal ball to see how this one will come out but right now existing commercial real estate can be bought for 30%-40% (sometimes more) than what it costs to build it.

That suggests to me that there is going to be a tremendous "price elasticity".   By that I mean market price snapping back to replacement.  It sure isn't going to go the other way around. 

I don't think there's any way there can be that much difference between market and cost sustained for very long.  The new thing now is the "Green Building".  It's a great time to take advantage of the pricing of some of the older inventory and bring it up to a "green" rated building for a future hold. 

I'm receiving a contract today on a Dollar General.  The price is $1,850,000 and the income from it provides the new owner with an 8.5% return for his "all cash" investment.  It is an investment that is secured by commercial property and guaranteed by the parent, Dollar General and will provide that return for 15 years.  Try to get that return for a 15 year time frame from your local bank or stock market.   Now is a good time to be in the market, you just have to buy a little smarter.

Being a CCIM I am qualified to give you a complete financial evaluation of any commercial real estate deal you want to consider.  Call me, Claude Gardner, 386 846 4135.  In addition, I'd love to know your opinion of the market.  What are you thinking?