Will we ever hit the bottom?!?! So many different reports are floating around these days - some say the commercial markets have “bottomed out”, and others say they haven’t reached it yet. A recently-completed report by The University of Florida stated that the fundamentals of the Florida real estate markets are showing signs of improvement, and we will begin to see more sale and lease closings in the near future. I hope they’re right!
I have been working several deals across the country during the last few months, and in my discussions with other brokers, there is a consensus that there is a lot of activity, and we are all very busy, but closing a deal is like trying to get your two year-old to eat asparagus. It will happen, but only after a long, hard fight-to-the-finish, where you’ll have to leverage every incentive under the sun! Personally, I think we are very close to the bottom, if not already there, but, unfortunately, we will remain in this position for the rest of 2010, perhaps longer. You might see a slight uptick here and there, only to be followed by a drop off in production across the board. With that being said, I believe more and more investors will come off the “sidelines” and jump into this market, and more and more sellers will “get real” about sales prices, the bid/ask gap will narrow and deals will close. Sooner or later, sellers and buyers will wake up and realize that the deals being offered will not get any sweeter in the near future.
Now that I’m done with all the maybe’s and hope-so’s, I can share some good news with you - the weather here in Jacksonville is about as good as it can get! The ocean is getting warm, and the girls are out in full force at the beaches. The Players Championship was held here last weekend, and you can bet I was in attendance cheering on the players. I had so much fun I almost broke my arm walking in between holes… there was a pesky root that I did not agree with, and the trip-and-fall was not fun! Luckily, the x-ray came back negative, and it’s still attached, so all is well. Until next time… have fun out there.
Jacob Horsley
NAI Commercial Jacksonville
