Elections are Over, Rejoice:  Now Let's Get to Work!

This directive seems to be the rallying cry of the election results.  We believe that the economy in Central Florida will feel the positive effects of the election, although at a slow growth speed.

From my perspective, the indicators are already positive, even just since the top of November. Inquiries are coming in to our office for both leasing and sales. With prices at record lows and interest rates for commercial loans in the 5+% range, users (especially long-term leasing users) are taking advantage of this market.

There is also something new with SBA loans: after the first of the year, they will allow refinancing of existing commercial loans.  So if you are holding a 7% or higher mortgage, you may want to consider a re-finance.  For details, contact BankFirst SBA loan officer Paul Ihrig by calling (407) 654-6599 or emailing pihrig@bankfirst.com.

My recent attendance at the National Association of Realtors Conference in New Orleans also provided some insight into the current climate.  The mood of many realtors is that we have survived the worst economic recession in over thirty years.  Most areas of the country are not seeing a stampede, but slow growth as forecasted by the NAR economic gurus.  Change is on the way.

Feel free to call me to discuss your thoughts. I wish you all a VERY HAPPY THANKSGIVING!

Canadian Strength

Canadian Dollar (loonie) Valued Against US Dollar - November 2010

High: $1.0356      Low: $0.9982

Quantitative easing in the United States is of incredible importance to Canada.  With the U.S. positioned as Canada's biggest trading partner, the loonie is often more sensitive to U.S. monetary policy than other economies. The loonie strengthened to beyond parity versus the U.S. dollar on three occasions in early November. (Source: MoneyCorp, who will lock in guaranteed exchange rates for up to 2 years)

With the winter approaching, we expect our friends from the North to be very excited about entering the U.S. market, and Central Florida is certainly on their radar screen.  I am still meeting and talking with the commercial brokers from Toronto and Ottawa and their markets are very strong.  Their clients are viewing the many opportunities available in our depressed market.  Buying with a strong loonie in a depressed market leaves a lot of room for error.  MORE VALUE WILL BE CREATED IN THE NEXT 18 MONTHS IN COMMERCIAL REAL ESTATE THAN IN THE NEXT 18 YEARS. 

Additional Information

Past issues of The Bottom Line shared information on:

*Prepare Now for 2010 Tax Savings

*Good News About Commercial Property Insurance

*When the Commercial Real Estate Market is Predicted to Hit Bottom

*Reducing Your Commercial Property Taxes

*How to Avoid Foreclosure

*Real Estate Taxes - It's Time to Review

*Elections and Tax Issues Affecting Commercial Real Estate

Click here to view those articles.