Commmercial Real Estate : Up, Down or Sideways
The incoming data on the state of the commercial real estate market is about as definitive as a “leading economist’s” predictions about the US economy. Depending on who you believe, it could be up,down or sideways. Of course, many of the observations are local to markets being reported , which has a lot to do with the conclusions drawn, but if you are someone looking for a clear direction, as a whole, it’s hard to make a case for anything absolute.
Let me cite a few examples.
In my own backyard, Fort Myers/Naples, Florida, I recently saw a report noting that for the first time in a couple of years we had achieved positive absorption in 3Q in a few commercial real estate market segments, namely office and industrial products. Next, I read an International Council of Shopping Centers (ICSC) newsletter that touts larger retail operators,(Target,Kohl’s and JC Penny) are “on the offense” and have plans for numerous new store openings next year. An additional ICSC brief notes a Barclay’s economist predicting that retail is going to lead the recovery and it’s going to be brisk. Further, a CoStar piece dictates that the industrial market has turned positive. Of course, all this is good stuff ,however, let us not forget all real estate is local in nature.
So what are we to believe? Is the commercial real estate market up,down or sideways. Obviously some of the “experts” cited previously are pretty profound in their assessments. Personally, my “boots on the ground” observations, in the Fort Myers /Naples FL commercial real estate market, tell me it’s a little bit of all three,especially when you add in the “local” factor. There are signs of life,treading water and despair. And from where I’m sitting it appears it will be as such for some time longer.
About Boback Commercial Group
Boback Commercial Group, a full service, commercial real estate company, located in Fort Myers, FL, has over 30 years of professional real estate experience. The company offers services and advice for real estate owners, users and investors, related to Florida commercial property sales and leasing, Florida commercial property and association management, investment properties, asset management, and distressed or foreclosed property workouts for banks. Boback Commercial Group serves the southwest Florida area with a primary focus on commercial real estate in Fort Myers, Cape Coral, Naples, Port Charlotte and the surrounding communities. Please visit our Website at BobackCommercialGroup.com or contact us by telephone at 239-466-7770.
