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Impact of Commercial Real Estate 2002 by - Nevil Green
-- As a kid I used to wish there was a McDonalds where a run down hamburger stand was and sometimes wished we could shop at a better market. Can anyone remember " ABC Market, " "Boy's Market" and it's Latin cousin "Viva," or " Lucky’s?" Today – this is what I do for a career – by helping bring better services to a community. If you have ever passed a business you knew wasn’t doing well and wished there was a Starbuck’s Coffee shop there instead – then in essence you might get the idea why I love my chosen career profession.
-- Real Estate issues are community issues - while a large segment of our general population is concerned with home ownership and understand the basic premise of residential real estate. It is important to note the related impact, and economic factors of commercial real estate.
-- The market activity in commercial real estate speaks volumes related to economic indicators that are also correlated to property values. If you are a home owner - you should want to know which local food stores, retail shops and services are being impacted by our current economy. Which retailers are targeting your community and what retailers are leaving your community or being resisted by the community at large? If there are large or increasing office building vacancies near where you live then jobs are not being created. Please keep in mind when a major employer considers a relocation of offices careful consideration is given to the commute and surrounding talent pool of potential employees. In addition to simple occupancy costs these factors are also weighted into the decision.
-- If a person owns commercial real estate the values associated with your investment and rate of return should be carefully considered. But how? Last year's comparable sales may not be helpful in today's economic climate. Any investor in real estate needs an informed strategy on how to best protect asset values at all times.
-- These questions as examples can be powerful indicators of what is really going on in the economy because these are things we can actually see, trust and not just hear about. As a retail specialist, I am constantly in touch with local retailers and various mom & pop store operators. “Who is paying rent and who is not is the main topic of many a discussion with local commercial real estate owners.” Since location, location, location is the name of the game in owning a business – my goal in providing upcoming news articles will detail tips of advice in negotiating the best lease, sale or acquisition of commercial real estate. As always I can of course be reached directly by phone at 310.235.2925. I am fortunate to be in a position whereby my knowledge in this business is augmented by extensive networking and a leading national firm with tremendous resources. All meaning that if I don’t know about it, I probably know who to call. Information is sometimes free but a strategy is always key.
Happy & prosperous new year -
Nevil Green is Associate Vice President for Grubb Ellis
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