Skip to content

Commercial Real Estate Rents On The Rise

September 1, 2013

Nearly three years https://plus.google.com/u/0/107470561101071499035/about of unbroken monthly job creation has left shoppers better off and businesses looking around for warehouse space that will allow them to stock up inventories. SEE ALSO: Kiplinger’s Economic Outlook Boom conditions theyre not certainly the improvement isnt enough to trigger another construction surge. But the situation is a great deal better than from 2009 to mid-2011, when industry discussion focused on how much rents had to be cut to keep any occupants in commercial buildings. The upswing is not evenly distributed, either, especially for retail space. Consumer demand has not rebounded equally and some big urban areas Los Angeles on the West Coast and New York on the East Coast, for example are seeing big rent increases.

Commercial real estate alphabet soup

It calculates the amount of the money borrowed compared to the acquisition, construction and/or renovation expenses. LTV is the loan to value ratio. It is the amount of money borrowed compared to the value. To the bank calculating the LTV, value is established by the contract between buyer and seller or by an appraisal, whichever is lower. NOI is the income from the property after operating expenses and reserves have been backed out. The net operating income is calculated without factoring in income taxes or principal and interest payments. REIT is a mutual fund based on real estate.

Lower Mainland commercial real estate sales continue to roll

Commercial real estate prices overall increased at an annual compound growth rate of 9.4 per cent in that period, still a strong showing, he said. More than half a $3.2 million a of the record-setting sales volume between July 1, 2011, and June 30, 2012 was poured into raw land deals. Of that amount, 62 per cent went toward land set aside for residential development. That means more than one third of the $5.71 billion that changed hands in commercial deals is slated for houses, condos and apartment buildings. While the value of home sales in B.C. declined more than 25 per cent last month compared to a year ago according to a report from the B.C. Real Estate Association, speculators may see that dip as a temporary hurdle, not a long-term obstacle, Carras said.

Advertisements

From → Uncategorized

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: