Sometimes you just wonder …what in da heck is next? The classic street entrepreneur can feel alone and uncertain about next move. Unprecedented times creates situations where no road maps are readily available. 

Solo Entrepreneur Contemplation

Solo Entrepreneur Deep in Contemplation

Notice the guy on the rock is standing still with arms in a protective and confident stance. He is thinking, “I just gotta ride out the storm” and all will be well. For the most part I agree with him, because density in Seattle allows for faster economic recovery, but investors must have the resources to ride the storm. An investor really needs to understand what is happening in their portfolio sector. For example Office buildings sure do appear ripe for change. It still remains to be seen if working from home is gonna stick.  

Seattle Commercial Real Estate

Property owners should stay the course with long term holdings. Buyers should consider also long term thinking while maintaining or recreating revenue production.

Commercial Real Estate in Pandemic

Commercial Real Estate in Pandemic

WA State Statics

Fresh WA State Statics

CBA Researched CMA Sales
2020 vs 2019 Change
January Through April (2020 vs 2019)

CBA Researched CMA Sales 2019 (first four months)cba analytics table

CBA Researched CMA Sales 2019 (first four months)First 2020

This chart below shows the first four months of 2020 took a whooping. 2019 to 2020 change 4 months snap shotChart above shows 2019 to 2020 change 4 months snap shot of WA state commercial real estate sales.                                                                                                                                                                                                            It is probable to assume this numbers will make a V-Shape recovery in the following fiscal quarters in cities like Seattle. Another common unit of measurement in commercial real estate is the vacancy factors. For years Victory Lane Development reports have been using 5% vacancy rates for residential apartments and 10% for commercial properties. Costar analytics is forecasting vacancy rates of 7.7% for residential apartments and 7.4% office buildings.                                                                Contact Victory Lane Brokerage for sales, leasing and development.                                                                                                                                          “What’s Next” truly creates unique meaning in the days of the Corona virus. 

 

 

 

 

 

Repositioning

Repositioning is to determine all best uses and selecting the best one. Best use deliberation is actual construction costs necessary to attract desirable new tenants. A keen understanding of markets and clever construction applications is critical for best repositioning efforts.

Industrial

Industrial is making a comeback in demand, not for manufacturing as much, but rather logistics. Big box distribution companies need large warehouse storage and delivery facilities all across America. Some preferred locations to invest are inside urban cores and near transportation hubs like railroads, airports and shipping docks.

Offices

Office is on shaky ground in 2020. Best office investments are in the A plus category with tech companies being the most attractive tenants. Clever repositioning for B minus categories will probably be required to accommodate the newer economy.

Multi-Family

Multifamily development is normally in strong demand. Labor and materials are expensive and cover most of your development budget. To determine your investment rate of return you need to consider projected revenues. If you plan on upgrading mechanical and structural systems you must incorporate clever repositioning strategies.

Land Acquisition

Land acquisition is normally the first prelude to development. A forensic study regarding zoning, critical areas, soil conditions, etc. is necessary to ensure project compatibility.