There is no doubt the local commercial market has taken a hit. The SW FL commercial market is suffering the consequences over development in the commercial arena combined with an overall economic decline that has affected the majority of the end users of commercial space – the small businessman. The lack of available work and low profit business agreements as a result of the recession has directly impacted commercial property tenants who can no longer afford their rent and have forced landlords to make rent concessions to keep their tenants in place. Some commercial property owners will be able to weather the storm. Others have started or will be forfeiting their properties back to the bank.
All this available commercial property under bank control has provided the savvy investor an opportunity. The foreclosure process for commercial property is just as long as it is for residential property within the state of Florida hovering around 18 months. However, it is my hope that when the properties are forced under bank control that the banks will have learned from the residential real estate crisis and be able to apply what they learned to the commercial market. The banks and commercial investors know that there are many criteria to assess a property on, but the most important is – Will the property make financial sense? This simplistic approach and harsh reality will hopefully allow for a quicker bank release of these properties so they can get them off their books and investors can get these properties functioning again.
To learn more about the commercial sector be sure to check out the recent WSJ article “Cashing in on a Real Estate Boom” on my News & Related Links page at www.ajbrealty.com If you are interested in investing in the commercial marketplace in Southwest FL feel free to call or email AJ Bremerman to discuss your intentions and objectives.
