Where are we in the Cycle? Well, that depends.
The commercial real estate market does not move as a whole. This is due to both the diversity of different regions as well as the diversity of product types on the market. For example, one region may be experiencing low industrial vacancy, while another location is experiencing an oversupply and higher vacancies. Even within a locale, cycle placement can be based on specific location, size of building, and type of building. Office, Industrial, Retail, Apartment and a new sector known as Senior Housing all have their own places within the cycle. The chart to the right shows the different stages in the cycle, and I’ve indicated where I believe we are in each sector.
Sub market focus: the Industrial sales market has been heating up, with very few buildings currently for sale. Most likely, prices will begin to rise, and the price discrepancy between existing buildings and new buildings will decrease. This will prompt the market to begin more new construction on industrial buildings throughout the area, so long as we don’t experience a sudden downturn. If you’d like to learn more about the current market price of your industrial building, contact me today.