Hottest Areas for Commercial Real Estate - Posted by Charles

Real Estate Investing
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Posted by Robert Turner on August 08, 2003 at 15:10:58:

RT

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Hottest Areas for Commercial Real Estate - Posted by Charles

Posted by Charles on August 08, 2003 at 09:24:01:

Anyone have sources for hot areas for commercial real estate? I am interested in areas in both NJ and NC.

Thanks.

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Timely article - Posted by ray@lcorn

Posted by ray@lcorn on August 10, 2003 at 15:05:06:

Here is a link to an article on CNN Money about a forecast for the hottest housing markets over the next year.

http://money.cnn.com/pf/features/lists/topzipcodes/index.html

While housing doesn’t always translate directly to the state of commercial markets, a healthy housing picture usually indicates stability and positive growth in population, employment, and income levels. All of these are basic demographic factors that need to be present for the health of commercial properties.

However, remember that local market supply and demand factors have a direct bearing on commercial property values even within a growing area.

On the demand side, the events that can affect the prospects of any market include employment shifts from one sector to another (e.g. manufacturing to service jobs); inward or outward migration in a population center, and changes in traffic patterns or highways.

On the supply side, the current stock for the property type in the broad area must be quantified; the competitive set for the specific property and location must be evaluated; and the likelihood for new supply (and/or barriers to entry) should be determined.

Don’t make broad assumptions that rely on data for a broad area. Check out the difference within the same metro area by zip code in the CNN article. I’ve seen several markets with rapid growth on one side of a metro area, and a ghost town on the opposite side. Ten years ago the MSA data used to be good enough to forecast performance. Now the census blocks within a zip code are used to pinpoint the right location for a commercial development.

Finding the next hot spot is a treasure hunt, part hunch, part science.

ray

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Re: Hottest Areas for Commercial Real Estate - Posted by Charles

Posted by Charles on August 08, 2003 at 18:30:56:

Thanks. This is a great forum. Ask a question and get a fast answer by the experts. Even if you do not know much it is good that you have a sense of humor!

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Vegas, Palm Springs and Mojave are hot now!!! - Posted by Bill

Posted by Bill on August 08, 2003 at 09:48:01:

nt.