Wednesday, July 11, 2007
Automotive Commercial Real Estate
In the Bay Area, I know that available lease space is hard to come by if you have an automotive use (read dirty - as in auto repair, smog, tires, muffler, etc) The difficulty in finding lease space, due to neighborhood issues, zoning, averse landlords, etc. makes lease rates higher and keeps occupancy very high. This seems like a good niche to invest in. I agree. Expect to pay more though in lender margins and the cost of a Phase 2 environmental report on each sale or refinance. My mantra is - people make money doing what other people won't. Mechanics do and landlords that rent to mechanics do.