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Commercial Real Estate Projections for 2016

Posted on by Nathan Diones

Viewpoint 2016 report predicts a positive influx in real estate investments in 2016. Because of a drastic increase in jobs and startups in 2015, commercial and office space rentals and property values will soon follow the flow; especially in the European countries where job creation and vacancies are soaring.

Commercial Real Estate on the Rise Again

Commercial Real Estate on the Rise Again

Other important reports of Integra Realty Resources (IRR) Viewpoint 2016 are as follows:

  • There will be a huge demand in office space since it provides longer and more durable benefits for renters. 18.6% of US real estate business will also get at least a 4% increase in Central Business District Class A. And Manhattan, which raked $8.4 billion in its investments last year moved forward to second rank in the US Market. This leads to an increase in price per square foot in the city, which is now at $1,497 and average apartments now sells at least $1,737,565.
  • Condo and multifamily residential units are and will be in demand in 2016. Real estate investors are not into single-family buildings today, as it is more expensive and riskier when a tenant vacates the unit and there is no one to replace the renter. The owner will have to pay for mortgage and utility bills. 90% of real estate properties are now in a redeveloping phase, and 88.7% of multifamily units can expect an influx for the whole year, except those cities that are affected by the fluctuations in oil price.
  • Retail remains strong and will keep going stronger in 2016. Online shopping and everything that is involved in it will keep soaring as well, thanks to omni-channel media marketing. Physical stores are now planning to expand their reach to online consumers especially in Orlando, Boise, and Jacksonville.
  • The industry that faces the biggest threat is the hospitality market; however, hotels and restaurants located in airport and suburban areas will get the highest RevPAR in the next 12 months.

The full report of IRR Viewpoint 2016 includes detailed methodology, real-time statistics, predictions, and charts, covering different industries involving the future of real estate business.

What is Viewpoint?

This is an annual report provided by IRR covering different economies and industries all across the country, which centers on real estate. It shows data, predictions, analysis, market analysis, investment, customer care ratings, leasing trends, valuation, and market conditions.

Take the time to read the Viewpoint to follow trends, maintain an asset, let go of the risk, and make wiser economic strategies regarding your real estate investment. As Michael Welch once said, “Real estate industry is changing constantly, and Viewpoint’s report will follow that change.” Keep yourself updated on real estate trends by keeping up with IRR Viewpoint. Everything in it may not happen but it sure can save your failing commercial property investment.

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Based in Yucaipa, CA, Regioncy Real Estate provides commercial and residential property owners with advisory and management services. Regioncy focuses on multi family, retail, office, industrial, asset management and a broad menu of residential services.  Our mission is to help our clients build, grow and preserve long term wealth by providing superior advice, strong representation, professional market knowledge and expert analysis.  Contact us here.

Tips on Increasing Commercial Property Value

Posted on by Nathan Diones

Today, more and more startups are planning to open office or physical stores; thus, the need for commercial spaces are in demand.  Take advantage of this rush and increase the value of your commercial property by following these expert tips.

Improve the quality

What’s the best way to increase your property’s value? Improve its quality.  No one wants to buy a commercial space that is not ready to use; or that still demands a lot of fixes.  And we don’t mean just repairing damages.  We mean using better, more current paint colors, setting up an indoor or outdoor landscape, rebuilding rooms designed for your target market, and adding amenities that are of great importance to your potential buyers such a relaxation hub, a storefront, a multipurpose hall, or a snack shop.  If the property generates more income and it provides convenience, it is a win-win situation for both the Landlord and the Tenant.

Study the historical data of the property

Studying historical data means studying everything about the property’s past financial history and activities.  This could be the building or company’s earnings, revenue, financial growth, and the cash flow it generates.  Historical data is great information that can simultaneously help you increase property value and decrease your expenses.  It can also show you how to price and improve the property, as well as predict any possible financial constraint you may face in the future.  In other words, historical data helps you make wiser decisions and prevents you from making any wrong turns that could hurt your business.

adding value to commercial property

Tips on Increasing Value to Existing Commercial Real Estate

Provide a long-term benefit to your customers

One great thing that you can do is to lighten the load of your tenants’s wallet in the long run such as cutting down utility bills by replacing energy efficient bulbs, solar panel systems and well as low flow water fixtures.  The last suggestion may sound like an expensive upfront cost, but if you can explain how much they could save by using solar power and reducing water waste, it could be of great advantage for both you and your tenants.   Properties with these energy efficient upgrades attract a higher quality tenant, and most often resulting in a higher net operating income for the landlord.

Who and what are its neighbors?

Your neighbors can affect the value of a property. And when we say neighbor, we mean the people living in your vicinity and the kind of properties that surround your commercial space. Even the condition of your neighbor’s home can make a negative or positive impact to your sales and Tenants.  Neighboring houses with physical and legal problems for example, can aggravate the value of the property you’re putting up for sale.  So before buying a house or commercial property that you want to refurbish, sell or retain as a long term investment, make sure you’ve got neighbors with good reputations.

 

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Based in Yucaipa, CA, Regioncy Real Estate provides commercial and residential property owners with advisory and management services. Regioncy focuses on multi family, retail, office, industrial, asset management and a broad menu of residential services. Our mission is to help our clients build, grow and preserve long term wealth by providing superior advice, strong representation, professional market knowledge and expert analysis.  Contact us here.

Considering The Possibilities Of Commercial Investing As A New Career

Posted on by Nathan Diones

When looking into commercial investments it can easily become a daunting undertaking. As a novice or real estate outsider it can seem that the odds are stacked in the favor of those with the experience behind them. However, while there is certainly a learning curve, it is absolutely something one can master with a little bit of dedication and thorough homework. For instance, take a look at the case of a recent purchase of a Dollar Thrifty Rental Car operation out of Fort Lauderdale, Florida.

Dr. Selvin Passen previously had a successful career as a medical doctor of pathology. He is now known as a successful commercial real estate investor. After retiring from medicine Dr. Passen, with the help and vision of a co-investor, began investing in marinas. This business decision proved to be a smart and very lucrative one. He is now known as a lead investor within marinas all around the state of Florida. Through a series of wise investments and equally wise business partners this practitioner of medicine is now a well-respected investor. His story is one of many which allows those of us with some trepidation, and also interest in commercial real estate arena, to see that it is absolutely feasible to become highly successful.

Boat Marina Investing

                                                          Boat Marina Investing

To continue with the inspiring tales of a doctor-turned-commercial-investor, let us look ahead into one of his most recent purchases. It was recently published that Dr. Passen has made the purchase of a Dollar Thrifty Rental Car operation. This property was last traded in 2003 for 5.45 million dollars. Dr. Passen’s management team purchased this property on his behalf for just at $10.5 million. In just over a decade this property’s value has doubled in value! Dr. Passen and his team of managing investors sees the great value in this property to add to his already impressive portfolio. Revisiting the importance of location with any kind of real estate investment, his investment will surely prove to be a wise choice in years to come. Florida continues to be an extremely popular tourist destination. What better investment could there be than a rental car facility next to a busy airport? Excellent strategy along with a team of dedicated investment advisors is a win-win strategy for sure. This is just another example of how someone who had a dedicated and successful career elsewhere became a savvy commercial real estate investor.

Real estate is one of the smartest investments you can make. The more you learn the smarter your investment decisions. Better investment choices means a greater return on investment. You too could join the ranks of those enjoying a second career that is often less time-consuming and stressful, and also more financially rewarding, than your previous career. If you are retired or considering retiring but don’t want to quit working and making money, then you might

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Based in Yucaipa, CA, Regioncy Real Estate provides commercial and residential property owners with advisory and management services. Regioncy focuses on multi family, retail, office, industrial, asset management and a broad menu of residential services. Our mission is to help our clients build, grow and preserve long term wealth by providing superior advice, strong representation, professional market knowledge and expert analysis.  Contact us here.

Why To Invest In Real Estate?

Posted on by Nathan Diones

Why you should invest in real estate? Is it, your passion or just you need to buy property for tax reasons! Here are the reasons below that will make you clear with the concept of why to invest in property rather than any other assets. Property investment is a way to go long.

Apartment Building Investment Offering Long Term Wealth

Apartment Building Investment Offering Long Term Wealth

Here they are……

  • Portfolio Diversification That Minimizes Risk: With the investment in property, you minimizes the risk with the portfolio diversification. Buying property near your principle place is really a good idea, as by this you would be able to keep an eye on the tenants. Another reason, being known to the place and moreover you can rent it to someone known.

But, when the question comes upon the risk of diversification, you need to think like this.

The principle place where you are residing, if it is at risk and you have bought another property at that place, then not only the new one is at risk, but the old property also. People who, wish to overcome through this risk factor, needs to consider things ass given below:

  1. Make purchase of property in different state or city
  2. Within different areas and price ranges
  3. Need to use different investment strategies
  • Value of Tangible Assets: Real estate and share, two terms, are one of the most important investment areas for some people. Yeah! These should be considered for the long term investments. But, there is a huge difference between the amount required for starting it. When an investor needs to buy shares, he can buy it with few hundred dollars, but when the question is about buying a property, one has to investor has to make hundreds of thousand dollars. For this, you need to find an investor that can help you out in generating maximum benefits with the minimum risk factor. And Regioncy will be perfect choice when you plan out investing in the property. A stock market carries risk along with it, it can completely volatile or make you touch the sky. But, risk is just parallel to it. But, when compared to the investment in the property, it has capital growth & minimum risk with huge benefits like: rental income is consistent, advantages in tax, bricks & mortar security, total control on investment. This, complete specifies the fact, that property is tangible and you are always aware of the condition of your property & can make changes accordingly.
  • Rental Return Income: So, what the objective of buying a property? Simply, that it can achieve wealth for you somehow. You might be aware of the fact that, for every investor, rental income is important, so as to return the mortgage loan or medium to meet any other property expenses.
  • Capital Growth Is For Long-Term: For the property investor, this investment is carried as a steadfast return of the investment in the coming future. Over the period of time, property investment increases the capital growth for sure.
  • Are you Aware Of The Fact, What Things Drives Capital Growth Of Property?: Capital growth of property relies on few points, which are listed below:
  1. Location
  2. Size of the property
  3. Development of the area where the property is
  4. Sales value of the surrounding areas
  5. Population residing in that area
  6. Wage level of the property
  • Benefits in Tax: The good thing about investing in a property is that, there are various tax benefit upon buying. The deductions for which you claim upon taxes by buying a property are as follows:
  1. Interest, on which you have borrowed money for buying a property.
  2. Tenancy cost, the cost paid to the property managers for advertising your property.
  3. Maintenance & Repair, the cost for the maintenance & repair for restoring the items and goods, such as kitchen renovation.
  4. Cost Holding: This is the cost that includes the money upon buying a property, which also includes corporate fee, gardening cost, contents insurance, pest control and building cost. These   are tax deductible costs.

Always talk to your accountant to ensure you are claiming your maximum legal entitlement when it comes to tax time.

 These reasons, will help you out while you invest in property for making a right decision in the whole journey. By this, you will avoid costly mistakes and will reach your financial goals sooner than you expected.

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Based in Yucaipa, CA, Regioncy Real Estate provides commercial and residential property owners with advisory and management services. Regioncy focuses on multi family, retail, office, industrial, asset management and a broad menu of residential services. Our mission is to help our clients build, grow and preserve long term wealth by providing superior advice, strong representation, professional market knowledge and expert analysis.  Contact us here.

Rents rise again in Southern California, but not so fast this time

Posted on by Nathan Diones

The average rent paid for housing in Los Angeles County in the first quarter climbed 2.4% compared to last year, to $1,520 a month, according to new figures out Thursday from real estate data firm Reis Inc. That’s roughly in line with inflation. Orange County is up 3.5%, to $1,660.

Both counties rank among the costliest rental markets in the country — though well below the $2,277 average rent paid in San Francisco and $3,233 in New York — and also among the tightest.

Redlands Four Unit Building