Opportunities

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100% Occupied Investment Property For Sale - Arlington Commercial Real Estate

New to market: 100% occupied mixed use building to the market in Arlington, MA. It's located between Arlington Center and Arlington Heights, was built in 1940, but went through about $100,00 in capital improvements over the last two years, and is being sold because the owner's retiring. The owner's agreed to offer up to 80% loan-to-value financing for a qualified buyer and is eager to sell.   Get free weekly email updates of this blog.

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Why Understanding Demand is Critical to Success in Commercial Real Estate Investing

A few weeks ago I had the privilege of teaching with one the CCIM Institute's most experienced and knowledgeable instructors.  He has spent a career mastering one of the most important, and often overlooked, components of commercial real estate analysis: identifying and quantifying demand.

He says that demand for space is 80% of the real estate decision and that financial analysis is the other 20%.  Too often, according to my colleague, investors and users focus on the 20% without really digging into what drives the numbers, who's going to be using the space, and why the proposed use makes sense.

Here's an example of why this is so important--overbuilding.  How many developers have you seen in the past 3-4 years losing gobs of money in real estate because of a shift in demand? And do you think the numbers they used are worth anything today? Here's why it matters. Essentially, jobs drive demand for office and industrial space.  As jobs are created, households are created, people get married, have kids and need housing and retail services.  They consequently create a demand for retail space and homes.

So what happens when the jobs go away, as in Massachusetts, which is currently reporting an unemployment rate of 8.6%? Demand for office space and industrial space declines,  creating more vacancies, which leads to a decline in demand for retail space and housing--i.e. a report out this week that multi-family vacancy rates nationwide have it a 22 year high.

The question is, when will the "death spiral" end?  (See Seth Godin's blog). The Death Spiral ends when businesses start reinvesting and hiring.  This is what I tell those who ask me when I think the housing market will recover.  Once the job losses stop and people start feeling more secure about their incomes, they'll start buying lattes and homes again.  Then as companies  ramp up to meet increased demand for their products and services, they'll soak up additional space at lower rates, hire more employees, and we'll see an uptick in consumer spending that will follow the initial consumption uptick of those with job security. My concern, however, is that our government will increase taxes and raise interest rates to pay for their meddling in our private industry, which would forestall the recovery and expansion as well as keep us in a protracted and skittish recovery for years to come.  What do you think? Would you like a demand analysis performed for your properties? If so, email me at Jeremy@Mansardcre.com with the words "How much demand is out there for my property?" in the subject line.  Include your name, when you would like to be called, and the best number to reach you. I will contact you to schedule a time for you to invite me to your office for a free consultation.  If there's a fit, you may retain us to conduct a demand analysis of your properties, their position in your market area, and identification of the top users with contact names and phone numbers to help you gain transparency into your tenant market.  If there isn't a fit, we'll tell you we cannot help and will refer you to another firm that may be a better match. Get free weekly email updates of this blog. About the Author:Jeremy Cyrier, CCIM is a principal with MANSARD Commercial Properties and member of the CCIM Institute faculty. He offers advisory services and brokerage expertise to commercial real estate owners and tenants. You may reach Jeremy at Jeremy@Mansardcre.com.

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Self-Directed IRA Investing: Make your Retirement Account work for You!

Are your retirement dollars gathering dust in your IRA account instead of providing you with greater opportunities? Last year, after hearing a short Pensco presentation about Self-directed IRA Investing in our office I knew I had to find out more. Sadly, at that time there were not any upcoming events in Boston. I was determined to find out more about Pensco so I traveled to New York City for the day. The Pensco seminar was extremely helpful and full of insight on how to capitalize on investment opportunities using money you already have. Quite simply put, a Self-directed IRA is no different than any other IRA except that you are using it to create more income. Rob Spalding will show you how to use your IRA to Start a Business, Earn High Interest Rates on Notes, Buy Income-Generating Real Estate and Make Private Investments to name a few of the items covered in depth. Sound to good to be true? Just as important as showing you how to use your money, Pensco will review the regulations and commonly asked questions surrounding Self-Directed IRAs including prohibited transactions. Resources and examples of everyday transactions performed with Self-Directed IRAs will be provided as well. Pensco events are attended by a multitude of professionals in Real Estate and related fields giving you the chance to network with other key players in the industry. By the end of the day you, will be ready to assemble your IRA investing team. Fortunately for us this year, Pensco will bring their seminar to Boston on May 14, 2009. Don’t get left behind…..Sign Up Today! 5.14.09 - Boston, MA Date: Thursday, May 14, 2009 Time: 8:30am - 5:00pm Location: UMass Club 225 Franklin St, Boston, MA Location Phone / Website: (617) 287-3030, www.umassclub.com For more information, contact Business Development Officer, Rob Spalding at rob.spalding@pensco.com. Or visit Pensco’s website at: http://www.penscotrust.com/education/adv_edu_5_14_09_ma.asp Sign up for free CREFrontline updates, if you haven’t already. It's free and has absolutely no obligations.

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Why Medical Office is Boston’s Best Bet

The Medical Device Industry, the new face of Boston’s Biotechnology industry, continues to make progress in an otherwise bleak economy. What makes medical device development so attractive is the short time required for research, development and FDA approval.  The medical device pipeline totals 5-6 years as opposed to the longer development pipeline for drugs of 15 years. According to the Donahue Institute study in 2006, 10% of U.S. venture capital went to medical device firms. In Massachusetts alone last year, medical devices accounted for $5.5 billion of sales, representing a 38% increase since 1997 according to the National Real Estate Investor. As a result of such robust growth, many medical device companies are expanding current facilities, leasing or buying new buildings. Medical devices include equipment used in heart surgery, minimally invasive surgery (laparoscopy), implantable devices such as pacemakers, orthopedic implants, x-ray devices and other small devices or items used to conduct procedures on a daily basis in hospitals. Research and testing of the new devices is often performed at teaching hospitals where surgeons can be consulted about the utility of these new devices. Due to the high concentration of world-class universities and teaching hospitals, including those affiliated with Harvard, Tufts and Boston University, the greater Boston area is especially attractive to the medical device companies. Many medical device companies first sprung up in Cambridge, near the Harvard and MIT campuses, where real estate can be as high as $60 per square foot. As a result of such high prices, many have moved out to the surrounding suburbs where the prices are much lower. Many of the current medical device company offices occupy previous machine shops or old mill buildings in the area where the cost per square foot is less. For these companies expanding to the suburbs, easy access to Cambridge is considered highly desirable, allowing consultants to commute between the company office and the university campuses. For those considering buying or leasing commercial property in the Boston area in 2009, medical commercial real estate reigns supreme. In an economy where other real estate sectors are downsizing, medical real estate is maintaining its value and transaction volume much better. Patients will continue to require physicians, the care they provide and the devices used to treat them regardless of the current economic situation….and the population is only getting older. And when you consider the potential for continued expansion of the medical device industry in Boston, you can further hedge your bets that medical commercial real estate is the way to go! Sign up for free CREFrontline updates, if you haven’t already. It's free and has absolutely no obligations.