The Bottom Line - 2011, A Great Starting Point for Recovery

THE BOTTOM LINE

ISSUE 201

2011, A Great Starting Point for Recovery

2011 has arrived, a New Year with the general feeling that the new political shift should help small business. The local, state, and national political decision makers are all in alignment that creating jobs is the #1 objective for this country to move forward. I have also noticed that Orange County Government is moving toward a business friendly attitude with their staff personnel.

What does this mean for Commercial Real Estate?

It is the right direction to come out of this stagnant business environment. Activity levels the first 3 weeks in december picked up five fold. The phones are at least ringing again. I also feel that the quality of the calls have improved from D & F grade prospects to at least B & C grade types. People are finally back to making decisions to move ahead in both leasing and sales.

Landlords and Sellers Are Finally Getting the Picture.

We are NOT at 2006 prices on rents. This means deals are getting done at much lower rents or selling prices. We feel we will see a burst of activity in repositioning of assets to include commercial properties once again. Most purchasers are paying cash or doing seller financing with sellers holding mortgages in the 5% to 6% range. This certainly beats having cash sit

at 1-2% in banks.

Perfect time for our Canadian friends.

The strength of Canadian loonies vs. the lowered, but upturning Central Florida market, makes it an ideal time for Canadians to look for Central Florida Commercial Property. Plus, we haven't plowed snow since the last ice age! It is time for you to, again, look at your strong Canadian loonies and think, "Is it time to look at investing your loonies for depressed american real estate in Central Florida?" The Canadian banks have taken over several local and state banks.

In conclusion, I see this year as a great starting point for recovery, though it may be slow. Maybe 3% to 4% appreciation is the norm and I would be happy with that.

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