Investment Home inventory Low?? Buy Commercial Real Estate!!

Smart Money, apparently ignoring national news reports, broadcast from thousands of miles away, about the real estate market has for the past couple of years buying up what was a huge inventory of distressed homes at prices lower than we have seen for years here in Arizona.
As those real estate investors have recently noticed is the inventories of those distressed homes has been depleted, I have partners that sell residential, that have told me they are sometimes competing with 12-15 other offers, of course the prices have been increasing as a result of that competition.
So the question I have now is, how long will it take real estate investors to notice that we still have a large inventory of commercial real estate, thousands of distressed commercial properties available for investment at prices lower than we have seen in years here in Arizona.
Whether commercial real estate will enjoy in the next year or so the increasing prices and double digit increases in rental rates the residential real estate has been reporting the past year I don’t know.
What I do know is we have available inventory of commercial real estate and according to LoopNet, the average sale price per square foot for office properties, in the Phoenix, Mesa and Scottsdale area, has risen to $73.15, a 4.5% increase since the end of last quarter, the current price is 5% above the three-year-low of $69.65 set in November 2011.
As far as the demand for commercial office properties the interest in office properties listed on LoopNet has risen 12.3% over the past year,  Demand on LoopNet for office properties spiked in the Phoenix Metro Area market, rising 33.6% since December 2011, 4.9 percentage points more than the  national average.
You may want to consider investing in Commercial Real Estate in Arizona.

2 thoughts on “Investment Home inventory Low?? Buy Commercial Real Estate!!

  1. Golden Real

    Sometimes buying a properties will just depend on the property if we like it or we feel comfortable about it, Often times budget counts a lot. So be wise in choosing a property that you would like to buy.

    1. rich0474

      You are right, if investing in commercial real estate is outside your comfort zone, for any reason, not just budget, it would be wise to get a partner or partners to go into the investment with you that have prior experience in commercial real estate investing and is/are comfortable investing in commercial real estate.
      Not only would this be an additional source of funds for the investment, but the experienced partner(s) no doubt already have a “team” experienced in commercial real estate to work with in the process. Good comment it is not good to allow yourself to be overextended budget wise.


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