This industrial property was built in 2007 in the newest industrial park in the Prescott, Arizona real estate market. Watch this video. Interested parties may contact Donald Teel by email or by toll free call to 877-777-9100.
Commercial capital and financial experts are predicting that the commercial market will begin to experience an accelleration of “Bank Owned” (REO) properties as more and more owners experience downturns in tenant performance and the inability to service existing mortgage debt, note calls and stringent refinance requirements.
It’s About the Money. Throughout 2009 and well into 2010, commercial owners are going to come under some pressure with respect to turning properties and even exchanging out due to the financial markets.
Sellers are already having problems finding buyers for conventional property investments. Why? It’s about the money AND it’s about the decline in values that buyers don’t want to face after they purchase.
New Market Realities. Savvy investors are thinking about the new market realities and where they need to park their money for the next 24-48 months. The key is minimizing risk.
This investment reluctance is leading investors to pursue real estate owned property (REOs) and that is why Arizona Commercial, my company, has established “REOS” or, Real Estate Owned Services” as am owner consulting and investment service.
REOS involves consulting services for existing owners, bank asset managers and of course, investors who are resisting declining property values found in traditional investments.
We cannot ignore the serious potential for commercial foreclosures inherent in the financial market today. To do so would be disingenuous and a violation of ethical standards related to client fiduciary.
What is the state of the commercial foreclosure market?
Will we see mortgage defaults in the commercial sector? Will the degree of defaults parallel the residential market collapse.
Sand State Foreclosures. Nevada, Arizona, California and Florida, the so-called “sand states” are experiencing the beginning of what can only be described as a plummet (my word).
According to the Las Vegas Sun, April 2, 2009, 25% of Las Vegas commercial real estate is troubled and Commercial properties valued at a whopping $7.885 billion are in trouble in Las Vegas as casinos struggle under the weight of the recession and office buildings and shopping malls lose or are unable to find tenants.
This phenomenon is being replicated in each of the “Sand States” as the federal government’s promised mortgage financing relief continues to be illusive to commercial investors.
[Read more…] about Commercial Foreclosure – Next Exit
This is but one example of the tenant-investor opportunities available in the central and northern Arizona market areas.
Centepointe East features the newest industrial property opportunities in the market and this piece is the most affordable of them all.
New free standing industrial building with 3 overhead doors, good parking, in new business park. Ask about Owner terms for potential purchase.
Located off Highway 89A between the communities of Prescott, Prescott Valley and Chino Valley, easy access to 1-40, and 1-17
Lease and Purchase Information:
There are three suites available within this building; Two 1,500 s.f. and one 2,000 s.f. Best of all they are priced at an amazing $0.25 per s.f. per month, plus NNN. In addition, this property can be purchased with a potential seller financing.
This aerial image of Prescott, Arizona’s downtown commercial area does not tell us much. It simply makes me wonder what is happening north, south east and west of the core area. There is a need to pan.
Market perspective plays a huge role in the analysis and decision making behind NOI, ROI and long term wealth accumulation for an investor. Putting distance between oneself and the market creates a better view.
Today, perhaps more than at any time in the last decade, market perspective counts and can easily impact a commercial transaction’s ability to perform and deliver the desired financial objective.
Lenders are looking at transactions with an eye toward long term performance based upon what I might call property actuaries. If a property segment (type) such as retail, medical, industrial, multi-family is on life support, the lenders are going to factor that illness into the capital risk formula.
[Read more…] about Market Aloft: The Birdseye Approach
Listen to this analysis and discussion about Commercial Real Estate with Prof. David Geltner of MIT Center for Real Estate. He tells us more on the mortgage deliquencies. (from Morning Call)
One square foot = 0.09290304 m2.
Okay, now what about Prescott, Arizona’s commerical market on a per square foot basis? What does it mean to owners and buyers. Is it time to buy? Is it time to sell? If so, how?
My recent suggestion to my Broker didn’t go over too well. “What we should be doing is pricing property for sellers on a ‘per square yard’ basis and for buyers on a ‘per square foot’ basis,” I said. He grimaced…I walked away.
High Value Market
We are a high value marketplace. Commericial real estate values in Central and Northern Arizona generally and in Prescott, Arizona in particular are declining creating an interesting investor market. Indeed, we appear to be nearing the bottom of the trough and it is and has been for some time…a buyer’s market.
We won’t be changing the marketing analysis to a per square yard formula but the principle behind the notion spells out the reality.
Resisting the Market Realties
Some owner’s are resisting the truth inherent in the current makret realities and in so doing they are actually capitalizing the reduction of their property value.
[Read more…] about Prescott, Arizona…Per Square Foot
The Northern Arizona commercial real estate market is tracking with the national markets. Leases were up by about 50 percent in 2008 over 2007 while the sales transactions over the same time period decline by about 45 percent.
Prescott, Arizona commercial transactions were weak in the first quarter, in line with Flagstaff and Sedona. The larger commercial real estate market throughout the Central and Northern geographic area continues to show a softening of price with increasing vacancies, especially within markets with smaller retail users.
The investment market is ripe with opportunity and top lenders such as Wells Fargo are making money available to qualified investors on performing properties.
Contact Donald Teel, Arizona Commercial by email or by calling toll free 1-877-777-9100.