Wrap Up
We will find out very soon I think. The sales
market has been on fire for A class properties of all asset types. Large
institutions have compressed cap rates and off market deals are becoming
increasingly rare. B and C class properties are starting to move now that
capital has started moving again. But it is still restrictive, as is
refinancing, and it is causing properties to change hands. The net leased sale
market is beyond hot, with investors flocking to drugstore and home improvement
stores, closely followed by the dollar stores. Clearly safe money is flowing to
the higher yields these properties can provide as compared to bank investment
options.
So what does it all mean? I am not exactly
sure but I am advising caution to my clients, seeing slowdown in retail
projections and inventories. This tells me that lots of people are preparing
for slower times, especially with higher fuel prices suddenly upon us. Now more
than ever it is critical to have up to date market information and advice to
help you make decisions today. Mistakes can be costly and be problematic for
years or even worse in certain situations. All of the above doesn’t take into
account current global and national events, that can change everything very
quickly (wars, problems with or in oil producing countries that raise the price
of oil, gov’t shutdowns, etc.).
One must be on top of what is happening out
there and how it can impact you and your business. We all have to be constantly
looking for that one thing, whether it be a new idea, information, a new hire
or other thing that can give us an edge to be successful. One of my favorite
quotes is from Mahatma Gandhi which is “Live as if you were to die tomorrow.
Learn as if you were to live forever.” which is just good advice for everything
in life on a daily basis in my opinion. It applies equally to business as it
does to life. So make that extra effort out there today, for yourself, your
business or anything else that is important to you and make it a great day!
If you have any ideas on the market or
anything else that interests you from this blog I would love to hear from you.
Thank you for your interest.
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