Transcript
Paul
Forsberg
presents:
SW Florida Commercial Real Estate Market Newsletter
This Publication Presented by Paul Forsberg, Income Property Specialist and Broker for HG Real Estate Services. Welcome to the First edition of South West Florida’s One and Only Commercial Real Estate Market Watch Newsletter. Getting Open, Honest and Timely Information about the local Commercial Real Estate market can be a challenge. The purpose of this newsletter is to provide you with a quarterly update of the South West Florida Commercial Real Estate Market. If you would like to see anything added to it, or have suggestions, please give me a call. This newsletter is about providing useful, timely information YOU can use. If you have a Commercial Real Estate need, Please give me a call and I will be happy to assist you in any way I can.
Seven Mistakes To Avoid When You Sell A Commercial Property
Just
making
ONE
of
these
mistakes
could
cost
you
Tens
of
Thousands
of
Dollars
... E v e n
t h o u g h
i n v e s t i n g
i n
commercial
property
is
becoming
more
and
more
popular,
selling
a
commercial
property
“correctly”
is
like
>inding
an
honest
politician.
Plus,
when
you
put
a
property
on
the
market
at
the
time
you
“Think”
may
be
“The
Right
Time”
you’re
still
subject
to
the
little
“SURPRISES”
that
can
reach
out
&
cost
you
thousands
of
dollars.
Here
is
the
short
version
of
the
seven
most
common
mistakes
sellers
make: For
FREE
detailed
information
on
the
Seven
Costly
Mistakes
Sellers
Make
Call
1-‐800-‐261-‐0454
ID#7020
Commercial Real Estate Investment Outlook
The SW Florida Real Estate Market EXPLODES into action in 2013 with some very impressive numbers.
The latest results from the NREI Investor Sentiment Survey show that investor confidence is not only surging forward, but investors also are preparing to accelerate their commercial real estate buying in the coming months. After taking a slight step back in second quarter, the Investment Sentiment Index moved five points higher to 171 in third quarter. That is a significant milestone as it marks the highest level the index has achieved since the survey first began in 2004. The Investment Sentiment Index measures investor views on key fundamentals such as improving occupancies, rising property values and plans to increase commercial real estate holdings. The index and broader survey results reinforce views that investors are gaining confidence in both the economic and
commercial real estate recovery. Unless you have been living under a rock, you cannot help but notice a HUGE increase in traffic, and an increase in business everywhere. Even if you don’t actively follow the real estate statistics, you can’t help but notice the busy roads, congested traffic and long lines in grocery stores and restaurants. SW Florida Is Busy! More on Page 3
© 2012 by Paul Forsberg CCIM Candidate
All rights reserved ! !
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!
!
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Page 1
Rental Properties: The (Real) Real Estate
I have been pounding the table for months: Real estate has bottomed out and it's time to take advantage. Yet, while prices are at or near historic lows, not everyone agrees. Many claim that we still have a ways to go before the rebound hits. They make the point that although foreclosures are dwindling, there are stragglers in the pipeline. They claim that while there's been some recovery in the economy, if it doesn't pan out, another wave of distressed homeowners is going to drag real estate prices down even further... I doubt it. But, that aside, there's no point in debating because as far as investing is concerned, the outcome is irrelevant. Why? Because Real estate in SW Florida is so ridiculously cheap at the moment that it doesn't matter one bit what happens with the market over the next couple of years. Now Is The Time To Buy Real Estate... Period Florida Real Estate is on Fire! HG Real Estate Services is a HYBRID type of real estate servicing company.
We do bank clean-outs, cash for keys, Short Sales, Broker Price Opinions, Property Maintenance, Property Management, etc. We manage and maintain a whole bunch of single family homes and have maintenance crews and licensed jobbers on call for just about anything. If Real Estate is involved and a service needs to be done, we can do it. We are approved with over 227 banks and asset management companies. (They have our number on “Speed-Dial.”) There are 77 MILLION Baby Boomers approaching retirement age. They are FLEEING high tax states - They are Retiring, and statistically, 22% of them move to Florida. Now, I know you what you’re thinking ..... “Yea - that’s all well and good, but I don’t want a thing to do with tenants, maintenance, and all that stuff.” Have no fear - I have a solution! HG Real Estate Services is a “One-Stop-Shop” and will do it for you. The only thing you’ll need to do is go out to the mail box and pick up the check .... (Our Clients call it “Mail-Box Money”) and, if that’s too much for you, we’ll transfer the funds right into your bank account while you travel or play golf!
Call 941-584-7400 for More Information
Florida Employment Positively Promising
It is important to look at year-over-year changes in the housing market due to seasonality. Employment is affected by seasons – so the only real way to measure employment in Florida is year over year. Florida’s total non-farm employment is the combination of private employment and government employment. Nonfarm employment is the main category we consider, though private employment is a key driver of economic growth. The graph shows the year-over-year change in Florida’s total non-farm and private employment from 2008 to
present. We felt the hurt from job losses in 2008 and although the turnaround isn’t as steep, we don’t want to digest the good news in employment.
It is clear that each month since August 2010 has experienced positive-growth in employment on a year-over-year basis. In May 2012, Florida employment was 8,506,000, about 200,000 more than in May 2011. As the jobs number have improved, so has Florida’s unemployment. EVERYONE should recognize the positive news in the job market. We know as Florida makes employment gains, the state’s real estate market will improve.
Florida is: ** #3 in the Country for Population growth (following CA
and TX)
** #2 in the Country for Job Growth!
Looking
for
someone
to
speak
to
your
Club
or
Rotary
group
about
the
Real
Estate
Market?
Paul
is
an
entertaining
and
informative
presenter,
and
an
EXPERT
in
the
local
Real
Estate
Market. Contact
Paul
at
[email protected]
© 2012 by Paul Forsberg CCIM Candidate All rights reserved ! ! ! ! ! ! ! Page 2
The
Real
Estate
Business
In
SW
Florida
Has
Been
Smokin’
Hot
And
My
OfLice
Has
Been
As
Busy
As
A
One-‐Armed
Paper
Hanger!
REGARDLESS of what the media message is, or what kind of Kool-Aid they are trying to make you drink, The Florida Real Estate Market is HOT. Unless some sort of financial catastrophe occurs,(usually
created
by
clueless
Washington
Bureaucrats), what happens in Arizona, California, or Maine, has little or no effect on the market in Florida. Prices
are
coming
up.
Offers
are
increasing
and
the
volume
increase
has
been
HUGE.
Money
in
Motion
has
increased
over
84
%
compared
to
last
year! Cash
buyers
from
all
over
the
world
are
here
buying
just
about
everything
in
site.
Many
have
had
their
eyes
on
foreclosures,
bank
owned
properties
and
handy-‐man
properties.
because
Nobody
is
buying
on
projected
numbers
in
this
phase
of
the
market
cycle
-‐
period.
Banks
won’t
lend
on
projections,
and
there
are
plenty
of
properties
available
on
the
market.
It’s
all
about
the
numbers. I
believe
anyone
marketing
a
property
based
on
Pro-‐forma
is
pretty-‐much
wasting
everyones
time.
If
you
are
interested
in
selling
a
property,
the
>irst
thing
you
need
to
do
is
get
the
numbers
right.
I
have
a
FREE
Special
Report
titled:
“Make
Sure
You
Are
Going
to
Get
Top
Dollar
When
You
Sell”
In
it
are
2
Strategies
and
6
Tips
you
need
to
know
and
do
before
putting
a
commercial
property
up
for
sale. If
you
would
like
a
copy
of
the
report,
simply
call
1-‐800
261-‐0454
ID
#
7022 Don’t
worry
-‐
the
report
is
free
and
you
are
under
no
obligation
to
buy
anything.
on
an
almost
daily
basis.
When
it
comes
to
a
bank
REO
sale,
it
is
out
of
control
-‐
smart
buyers
are
sticking
with
non-‐bank
owned
homes
that
need
little
or
no
work.
They
are
getting
better
deals.
In
North
Port,
back
in
2011,
you
could
buy
a
single
family
home
built
after
2000
for
$50
-‐
$70K.
The
same
homes
are
now
selling
for
$125
-‐
$130k.
It’s
all
good
because
the
increase
in
volume
in
the
housing
sales
has
begun
to
bring
builders
back
into
the
market.
And
we
all
know
that
is
the
real
driver
of
the
Florida
economy.
Home
sales
have
been
so
brisk,
my
associate
Connie
Nowell
is
offering
her
sellers
an
almost
unheard
of
Home
Selling
Guarantee
-‐
She
GUARANTEES
to
sell
their
home
in
121
days,
or
She’ll
Sell
It
For
FREE!
Personally
I
am
dealing
with
three
individual
investors.
1
German,
1
Canadian,
and
1
New
Yorker
with
deep
pockets,
loads
of
cash,
and
have
have
A+
credit.
They
are
buying
everything
they
Over
the
past
3
months,
we
have
closed
can
get
their
hands
on.
on
over
$4,000,000
of
commercial
property
and
have
over
$6,000,000
in
They
Are
Paying
Top
Dollar
as
long
as
offers
out.
the
properties
are
priced
properly.
Combined,
they
have
about
$18,000,000
Properties
need
to
be
occupied
with
(eighteen
million
good
leases.
dollars)
Leverage
up
Offering
prices
are
based
on
actual
at
75%
LTV,
we’re
>inancials
-‐
NOT
Pro-‐forma
numbers.
looking
at
Seventy
(They
won’t
even
look
at
a
pro-‐forma).
Two
Million
Dollars.
If
you
are
even
One
of
the
biggest
challenges
I
am
thinking
of
selling
a
having
is
sifting
through
all
of
the
commercial
property,
deceptively
marketed
properties
with
give
me
a
call
for
a
no
pro-‐forma
numbers
made
to
look
as
obligation
actuals.
A
complete
waste
of
time
as
far
conversation
about
as
I
am
concerned.
the
property.
Maybe
In
my
opinion,
those
brokering
we
can
put
something
properties
with
pro-‐forma
numbers
are
together. doing
a
disservice
to
their
sellers
and
ought
to
have
their
head
examined
On
the
single
family
homes
front,
my
of>ice
is
seeing
multiple
offer
situations
© 2012 by Paul Forsberg CCIM Candidate All rights reserved ! ! ! !
The
same
investors
were
buying
single
family
homes
a
year
ago,
and
now
that
the
single
family
home
market
has
switched
to
a
sellers
market,
they
have
switched
strategies
and
only
want
commercial
income
properties.
www.Soldin121Days.com
Lot
sales,
in
general,
have
been
brisk.
six
(6)
months
ago,
you
could
buy
lots
all
over
the
place
for
$1,500
to
$2,500
each.
Now,
they
are
in
the
$3,500
to
$5,000
price
range. The
bottom
of
the
market
has
moved
up
60%
to
100%
over
the
past
6
months.
It
has
been
a
great
time
to
buy
at
the
Continued
on
page
5 See
Real
Estate
Business
bottom
and
many
investors
have
been
! ! ! Page 3
Multi Family properties in the area seem to have turned the corner in 2012. The graph on the left above indicates the County is up 4.2%. FINALLY it looks as though the trend is beginning to make a coming back.
Industrial properties seem to be making a little bit of a comeback as far as leasing goes (chart on left), but sale price trends are still falling. I predict, as residential sales and construction continues on the upswing, sale prices of Industrial properties will also begin to increase.
Retail Sale trends have been bouncing around what looks like the bottom for quite some time. As you can see in the chart to the right, leases in the city fell off the cliff in 2011 it but looks like they are making a rapid comeback. As Lease rates increase, so will property values. If you’re thinking of buying retail space, now may be a good time.
Office Properties are still struggling a bit. It looks as though they are trying to establish a bottom. We recently closed on a fully-rented Medical Office building in great condition and within walking distance to a Hospital at a 10Cap. The seller was happy to sell, and the buyer was happy with the purchase. A True Win-Win transaction!
Real
Estate
News
You
Can
Use (941)
584-‐7400
www.FL-‐CommercialRealEstate.com
February
2013
Real
Estate
Business Continued
from
page
3
North
Port
is
BOOMING.
The
city
council
made
the
decision
to
make
North
Port
a
business
friendly
town,
and
the
results
are
astonishing!
The
main
drag
of
North
Port
on
RT
41
is
building
shopping
centers,
restaurants,
banks,
commercial
centers
and
more
like
crazy.
Benderson
Development
is
building
and
National
Big-‐Box
Stores
have
moving
in! Major
employers
are
looking
at
the
area
and
are
negotiating
with
the
city.
All
good
signs
for
North
Port
and
it
shows. Long
story
short
... ..........
The
SW
Florida
Real
Estate
Market
is
smokin’
hot!
We
are
back
in
the
upward
phase
of
the
business
cycle.
Our
of>ice
is
“Smack-‐Dab”
in
the
middle
of
North
Port.
14385
Tamiami
Trail North
Port,
FL
34287 941-‐584-‐7400 Right
alongside
the
Olde’
World
Restaurant.
Next
time
you’re
in
town,
stop
by
and
say
hello!
5 Ways to Avoid Running Out of Money During Retirement ....
One of the Biggest Risks Retirees Make is Running Out of Money During Retirement Don’t Let That Happen To You Even if you have something else in place, this FREE REPORT Includes Research You Can Use Right Now! Call 1-800-261-0454 ID #7040
How To: Sell Your Commercial Property for Top Dollar, Eliminate Capital Gains Tax and Create an Annuity All At The Same Time! 800-261-0454 ID# 7036
This SECRET Sales Method Attracts Eager ~ Motivated Buyers Like a Super Strong Steel-Magnet!
You don’t want to miss it!
Find Out What Commercial Properties Down The Street Sold For.
You can receive a FREE Computerized printout of recent commercial property sales and current listings in your area or any other area of your interest. Mailed To You at NO COST or OBLIGATION You don’t have to talk to anyone. Just call the 24 hour Hotline and leave a message about what type of property and area you would like to have information on. This information will give you a good idea of what your property might sell for if you were to put it up for sale in today’s market. To receive your unique FREE Area Sales Report Call Our 24 HOUR HOTLINE 1-800-261-0454 EXT #7034
© 2012 by Paul Forsberg CCIM Candidate All rights reserved ! ! ! ! ! ! ! Page 5
Real Estate Investors Corner Everyone knows investing in real estate is a “no-brainer”
way to financial independence and real - long term wealth. The problem is, land-lording can be a real hassle. ESPECIALLY for long distance landlords. The key to profitable real estate investing is having a reliable and dependable support team.
HG
Real
Estate
Services
is
a
HYBRID
property
management
company
-‐
we
do
ALL
the
work
for
you.
Locating
tenants,
clean-‐outs,
maintenance,
lease-‐ups
and
more! Let
HG
Real
Estate
Services
do
the
work
for
you!
Now
is
the
time
to
buy,
for
cash
\low
and
appreciation.
Offset
your
retirement
income
with
rental
income
and
enjoy
numerous
tax
write-‐offs
and
travel
bene\its!
FREE Information Corner
Valuable FREE reports for Buyers mailed to you at no cost or obligation. Call Anytime, 24 hrs a day to 1-800-261-0454 and enter the ID# of the information you would like to receive. THREE
SECRETS
-‐
To
Having
an
Offer
On
Your
Commercial
Property
Within
72
Hours
..............ID#
7024 WHAT
99%
OF
INVESTORS
DON’T
KNOW
-‐
Cash
Flow
Secrets
of
Successful
Commercial
Real
Estate
Investors
...........................................................
ID#
7042 SEVEN
MISTAKES
TO
AVOID
WHEN
SELLING
A
COMMERCIAL
PROPERTY
-‐
Just
Making
ONE
of
These
Costly
Mistakes
Can
Cost
You
Tens
of
Thousands
of
Dollars
.............................ID#
7020 FIVE
QUICK
STEPS
-‐
To
Full
Occupancy
in
Your
Commercial
Property
.....
a
CRASH
COURSE
.....
ID#
7033 HOW
TO
MAKE
SURE
YOU
GET
TOP
DOLLAR
WHEN
YOU
SELL
-‐
3
Strategies
and
6
Tips
...................
ID#
7022 SHORT
SALES
-‐
FORECLOSURES
-‐
BANK-‐OWNED
INCOME
PROPERTIES
-‐
Free
List
with
Pictures
of
all
the
available
distressed
properRes
currently
available............................................................ID#
7043
LANDLORDS Done-For-You Property Management Automated
-‐
Online
and
Painless! Let
us
handle
all
your
land-‐lording
needs. “Peace
of
Mind”
Is
Perhaps
The
Greatest
BeneXit
We
Offer
Our
Property
Owners.
We
Are
Committed
To
Protecting
Your
Investment
by
locating
quali>ied
high
quality
tenants
and
the
best
possible
service
&
preventive
maintenance
programs
assuring
you
the
Highest
Equity
Return
on
Your
Investment.
We
Are
So
Sure
Of
Your
Satisfaction,
We
Back
It
Up
With
A
Full
6
Month
Guarantee.
If
we
don’t
do
as
we
say
-‐
and
you’re
not
happy,
we
will
tear
up
our
agreement
right
there
on
the
spot.
Call 941-584-7400 Today
“Owning
Rental
Property
is
fun
again!”
Marg
Smith,
Atlanta
GA “The
money
appears
in
my
bank
account
without
me
doing
a
thing
-‐
Thanks
HGRE!”
Mike
M,
Punta
Gorda
FL
COMMERCIAL DISTRESS SALES
FREE Computerized Printout of Distress Sales, Bank Foreclosures & REO’s. You can have a printout mailed to you at NO Cost or Obligation. Please indicate which price range and preferred area and property type you want to receive information on. 1-800-261-0454 ID # 7043
~~
Vacant
Land
~~
“They’re
just
not
making
it
anymore”
Sign-‐up
for
the
“Best
Buy
Hot
List”
of
Vacant
Commercial
Land
investment
opportuniRes
in
South
West
Florida! FREE Computerized Printout of commercial Lots, Land and Acreage sent to you at No Cost or Obligation FREE List with pictures 1-‐800-‐261-‐0454
ID
#
7049
for
more
info.
© 2012 by Paul Forsberg CCIM Candidate
“I have known Paul for over seven years. He is a very energetic, detailed orientated and very hardworking. He is a man of his word. He has been and always will be very successful. I HIGHLY recommend him.” Kristine McMahon, Sr. Loan Consultant, The Manhattan Mortgage Company “Hi highly recommend Paul to anyone interested in making money. Paul has proven time and time again to be a highly successful and ethical businessman in the field of real estate and marketing!”Michael Thompson, Co-Founder, S.W. Florida Real Estate Investors Assoc.
All rights reserved ! !
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!
!
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Page 6