Dear Real Estate Enthusiasts,
I'm pleased to report that the new year is off to a great start with call volume and overall activity up over last year at this time. We believe we have scraped the bottom of this trough and UP is the only way to go now. There is still a good deal of hurt and anguish to be rung out of the market as high vacancies continue to exist and commercial mortgages come due and cannot be easily renewed. But there is some evidence that rents are starting to edge back up, demand is picking up ever so slightly and we can't be more pleased.
In our last (December) issue, we talked about a new online auction concept that might have merit for some of our clients who want to try a different approach. I am personally placing one of my own properties in this auction on March 16th and will be happy to tell you how it works out in our April issue.
One final note, one of our top agents, Bruce Kaplan , is running for Cary Village Trustee and the election is April 5. Bruce is championing a pro-business platform and attempting to protect freedom of speech in our mutual hometown of Cary where that Village last year decided to start charging fees to install For Sale and For Lease signs. The Illinois Association of Realtors is backing him and I hope you will ask all your Cary friends to vote for him or support his campaign financially or otherwise. Sincerely,
Bruce Bossow
Bruce Bossow
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One Government Program That Works
By: Bruce Kaplan
If you are thinking of purchasing or refinancing a commercial property in the near future, you must familiarize yourself with a great financing option offered through the U.S. Small Business Administration (SBA). There are two main programs available through the SBA: 1.The SBA 504 Program and 2: The SBA 7a
Program. These types of financing have been around a long time but in this depressed economy, it is the savior of many a commercial/industrial real estate deal.
To give you some perspective on how this program has gained in popularity, in fiscal year 2010, SBA supported more than $22 billion (54,833 loans) in lending to small businesses through its two largest loan programs, compared to more than $17 billion (47,897 loans) in fiscal year 2009. The average weekly loan volume for fiscal year 2010 was $333 million, which was a 29 percent increase over the average weekly loan volume of $258 million for fiscal year 2009.
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Commercial Real Estate Update for January 2011
Jed Smith, Managing Director, Quantitative Research, and George Ratiu, Research Economist, give an update on the commercial market and talk about the findings of the latest Quarterly Commercial Real Estate Market Survey. While the survey results show that right now is a difficult time for commercial REALTORS®-with high vacancies and low rents-there are some signs of recovery in the market for 2011, with even more significant improvement expected in 2012.
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Proposed Rules May Increase Ownership of Commercial Real Estate
Although accounting rules usually don't end up as front page news, there are some recent proposals to change the Financial Accounting Standards Board (FASB) accounting rules that should have a significant impact on the commercial real estate industry. The rules may make it more likely that companies will choose to own property rather than rent it, and may also change lease negotiations for those who do rent.
Currently, a lease can be either a capital lease, which is reflected on the tenant's balance sheet, or an operating lease, which shows up on financial statements in the form of rent as a monthly expense. The proposed rule would treat almost all leases as capital leases. FASB argues that this rule would encourage transparency and give a more accurate picture of a company's financial condition.
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Two Stories
One of our fellow members in the Northern Illinois Commercial Association of Realtor, Dan Porter, sent this interesting story to us and we thought we would share it.
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Premier Commercial Realty
9225 S IL Route 31
Lake in the Hills, IL 60156
T: (847) 854-2300
F: (847) 854-2380
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TURNKEY RESTAURANT
McHenry County- Well established 120 seat restaurant and lounge. Includes real estate, all equipment, trained staff and a 3 bedroom 1500 sf apartment. Confidential sale. $595,000. |
OWNER SAYS "DUMP
IT"!
2022 S. Rt 31 McHenry McHenry- McHenry-60,000 sf pre-engineered steel industrial building with 12000 sf office component on 5.53 acres. Fenced outside storage. Large signage for greater exposure. Sale : $2,500,000. Lease: $4.50 psf gross.
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Deal Of The Month
PIZZA HUTS SOLD! McHenry County-
3 locations, 2 with real estate included. Sold for $870,000. |
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Recruiting Corner
Being a commercial real estate broker is not all "glitter and glamour" these days. Why would anyone want to get into real estate brokerage as a career choice? The answer is simple - FREEDOM. Freedom to run your own business the way you see fit; freedom to spend your time on the activities most important to you, freedom to buy and sell for your own account and the ability to know about deals before they hit the market. Yes, it is a bit slow right now, but that makes it a great time to learn the business. We are actively looking to expand our sales staff. Call Bruce Bossow, Broker-Owner, for an interview. |
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