Pappas Realty Co... "Commercial Real Estate...Exclusively" in Northeast Ohio since 1957

Thursday, December 29, 2005

Akron's forecast for 2006... #34 in the Nation !!

Existing Home Sales Slip in November ** Click here for article

Friday, December 23, 2005

Kent Shopping Center Sells ** Click here for story

Welcome back, welcome back, welcome baaaack.


As we wave goodbye to Sarasota, Fl, 2005, Johnny Damon, and a robust housing market (see link above), we take a moment to reflect on what was, is and will be.


As for investments in Northeast Ohio, the market here remains stable and has a positive glow surrounding it, as the new year will bring more foreclosures in the wake of a predatory, aggressive and fervent market, but alas, those past and present homeowners may soon be relegated into the world of renting, thus creating a plentiful or satisfactory market for landlords.

Also, affecting the rental market in Northeast Ohio will be interest rates. But when do they not affect the market? Moving forward though, i believe the rising rates will encourage an increasing business and invesmtent arena for Northeast Ohio, as a 4% cap rate investment in sunny California sure looks nice, but not on paper. Meanwhile the majority of investments in our market continue to sell in a moderate range of 8.5% and up with the median being approximately 9.75%. A good portion of sellers are also entertaining assisted financing and this is helping to catalize the continued invesment in our area.

We look towards 2006 with determined energy, as we feel the investment market will continue to offer investors strong to stable returns.



The retail market in Northeast Ohio has been in a word.... soft. Although new business have opened and entered the market, just as many if not more have left, closed or stopped business altogether. The atmosphere in looking ahead for 2006 is restrained, as we expect more of the same with a slight move towards more positive results and less closings. On a side note, a majority of owners are offering subsidies for new tenants, such as free rent or incentives.


The office market is just as dry if not parched. Although many companies have moved into new space or more attractively priced space, a good portion of empty spaces sat empty throughout the year and will continue to do so. A prominent pattern we noticed, was the majority of new leases were lateral moves versus new business or first time renters, and ultimately, the buyers market created good opportunities for business owners to purchase property versus leasing.


This is our most improved market for 2006. We see good opportunities here for the Northeast Ohio market, as rates rise, prices stay stable or pull back slightly, the opportunities exist for companies to utilize our states/counties beneficial incentives and to open, expand or continue business here. The vacany rate should come down in 2006, and sales should continue there solid numbers acheived in the 4th quarter of 2005.

Saturday, December 17, 2005

Click here for article regarding below post.

I am typing this from Sarasota, FL.....

Good article on local attitudes and sentiments on the current lull in the market and with the panic in the market, i can validate some of the points made, but in also seeing the other side, whereas the builders in the article seem to feel that although a slowdown is happening, they feel the market will continue to satisfy the continual building of homes. In my neighborhood two months ago there were two condos for sale.... now there are 6. The same numbers hold true for one of my friends and his home. He had one home for sale four months ago and now there are 7 in his community. I get the feeling that most home owners and residents are simply trying to get the money out of their home, as the appreciation has been a bit ridiculous... almost anywhere between 5% up to 300% in some cases and more I am sure if there are certain attributes such as waterfront, golf courses, etc.
Ultimately, I feel the market has been flooded with sellers and now presents a buyers market, in that, some investors who may have gotten aggressive financing, may be willing to sell at a loss just to unload what they thought would be a quick flip as to avoid the mounting mortgage, condo, real estate, utlitity costs that are due monthly.

I have another premonition that the market will stabilize, but the appreciation that has been so newsworthy, will be tempered but above average for the forseeable future. A plethora of problems and concerns exist for a market like this, such as forclosures, folks who live in the area, but cannot continue to afford living in the area as property taxes skyrocket, etc. Eventually the rental market which has all but dried up due to condo conversions, ability to purchase versus rent, will come back into popularity or necessity is a better word, as folks who were trying to purchase but became overwhelmed, will then look to rent. Now the other side of the sword is, as a landlord can you overpay and rent your investment out for enough money to cover the mortgage and the expenses that also come along with ownership. In most cases it will be tough to succeed, unless you buy right, or have the ability to cover some minor expenses each month but cover the mortgage.

Anyhow, thats my wrap up report for the past week. I hope everyone had a great weekend no matter what the weather was like wherever you might be reading this.

Stay warm and the best to you and yours this holiday season.


Tuesday, December 13, 2005

Good article on rising rents and affordable housing

Fed delivers 13th rate hike!!! via Yahoo link ** Click here for article

Friday, December 09, 2005

Overvalued markets report - via Real Estate Articles from Inman News ** CLick on me for report

Wednesday, December 07, 2005

U.S. Housing Market Seen Declining in 2006 -- Click here for article via Yahoo link

Tuesday, December 06, 2005

A big Holiday "Thank you" to all who have commented or made contributions to the site. Oh, and "Fear the Roo" Go Zips...Beat Memphis!!

To all whose eyes may rest upon this screen, may your holidays be filled with warm tidings and your stockings nano ipods!

Seriously though, its another remarkably sunny, but otherwise cold day here. Single-edged sword if you will.

Keep your eyes peeled for the next bit of Commercial Real Estate news, and keep the listings, investments, cash flows coming.


Tax Rollback - via Beacon Journal ** Click here