Welcome back, welcome back, welcome baaaack.
Well,
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.
MULTI-FAMILY
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.
LEASING
RETAIL >>
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.
OFFICE >>
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.
INDUSTRIAL
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.
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.
MULTI-FAMILY
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.
LEASING
RETAIL >>
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.
OFFICE >>
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.
INDUSTRIAL
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.
posted by S. Dreznin at
2:52 PM
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