Commercial Real Estate Sector Seeing Rebound in SoCal

Posted by admin on June 17, 2009 under Good Info - Read It | Be the First to Comment

LOS ANGELES – June 16, 2009 – With prices down, small investors in commercial property are returning to the market searching for properties to buy, says Dana Brody, a practitioner with Grubb & Ellis in Los Angeles.

Brody says even though there are some eager buyers, the market remains slow because buyers are holding out for better deals, and few sellers are willing to take lowball offers.

Richard Ziman, manager of a $630 million real estate investment fund, says waiting may be a good idea. But for those determined to buy, he suggests making a supportable offer. His advice: Calculate how much it would cost to build the target property – the replacement cost – and offering that. Ignore the value of the land, he says.

The kinds of properties on Ziman’s buy list include mobile home parks, industrial buildings, and small retail centers anchored by grocery or drug stores. He also warns investors away from mom-and-pop operations. “Mommas and poppas are dying,” Ziman says.

Source: Los Angeles Times, Roger Vincent