Now is the Right Time for Buyers

Buyer’s market vs seller’s market, credit crunch vs market correction; who should you believe? Here are some specifics:

1. The recent economic problems have staggered Wall Street
2. Main Street is bracing for a “trickle-down effect”
3. The credit crunch is creating panic for those looking to borrow money
4. The flow of money from bank to bank has slowed
5. The Fed is trying to curb fears across the financial spectrum
6. Bailout plans are in the works, but it will take some time for their full effects to be felt

Opinions are running rampant regarding the current state of affairs in all business sectors, including commercial real estate. Is this the beginning of a problem? The middle? The end?

What is certain is that now is as great a buyer’s market as any. Commercial space vacancy is at a three year high, with landlords and builders searching for tenants to occupy open spaces. Unoccupied commercial spaces in the suburbs are up roughly 2% from a year ago. In Chicago, office building vacancies topped 10.7% which is the highest percentage of vacant office space since 2002.

Advantage: buyer.

We have already seen rents in the suburbs come down in price from the second quarter average of $22.54 per square foot, and many real estate experts expect to see the price decreases continue. In the city, property taxes on commercial properties are comparable with those of residential lots. Combine those two seemingly different data points and a trend emerges; everyone with a vested interest in filling commercial spaces, landlords and local governments included, are trying to do everything in their power to entice tenants to buy and rent.

What does this all mean? Now is as good a time as any to search out realty opportunities that satisfy your business needs. The downturn in the economy can be seen as an opportunity for those firms willing to invest in a change of scenery. Whether it is upgrading or downgrading, building new, or retrofitting; today’s marketplace is riddled with commercial real estate opportunities for companies of any size.