Throughout these difficult economic times, I have come across deals I have felt were unbelievable, and I would never have told my client the owner would sell/lease for that low of a price. Many times, my clients were very happy with the terms of these deals, and a couple times they felt we could do even better.
Lately, I seem to be coming across many prospects who feel, because the economy is poor, and there is a lot of vacant space on the market, that the owners should basically give the space away. They give me a number they are willing to pay for their respective space and often, their expectations of the market are simply unrealistic. I must admit that I admire their motives and would be trying a similar tactic if I were in their shoes. However, any prospect looking at industrial, office, retail, or multi-family acquisitions in today’s market is shopping at the K-Mart of real estate during a “blue-light special” and is already getting the “deal of the decade”, if not the “deal of the century”! I mean come on people – we’re talking about asking rates starting at 30-40% less than at the height of the market in 2007. Personally, I think that’s a great start, especially considering the fact that every time I negotiate a deal, the owner/landlord takes an additional 15-25% off the asking price - many times even more - depending on the deal.
The bottom line is these are great times to be a buyer/tenant in the market, and just like the good times for sellers/landlords from 2005-2007, they will not last forever. Activity has begun to pick up in Jacksonville, and from what brokers across the country are telling me, the same thing is happening in their markets. In Jacksonville, more deals closed in July, 2010, than during any other period in the last 18 months. Call your broker, analyze your needs, and find yourself a deal! These are times to be taken advantage of! Listen to your advisors - they are in the market all day, every day, and they will lead you to that great deal.
Jacob Horsley
NAI Commercial Jacksonville, Inc.
Industrial Group
