Friday, April 4, 2008
Good Commercial Deals in California
I wish there were some! Well, that's not exactly a fair answer. Let me explain, break down the question and dissect. If you are an apartment building owner in Silicon Valley - rents are up, vacancies are down and you are very happy AND unmotivated to sell. If you own a strip shopping center in the Silicon Valley - same thing. Those are the two product types that I deal with most often. Less robust, yet still strong is the retail strip market throughout the rest of the state. Apartments though - quite a different story. If you have units in the Central Valley - it's getting very ugly out there. Think of your competition. A slew of single family homes, most only a few years old, that are vacant and looking for tenants. Why would a prospective tenant move into a 30 year old walk-up building in Fresno, when they can have their choice of a mini-mansion down the street? I have to ask though - is this the "good deal" you want - buying an apartment building in the central valley? I think that market is way too soft to consider at this point. Let's look next year and re-assess. There are good deals out there though - let's talk so I can show you what, where and when.