Happy New Year everyone! I hope you are refreshed and ready to kick the stuffing out of 2014! Here is a good way to start things off – with some speculative office development. Only in good times (or soon to be good times) do speculative projects of any kind get built. What does this mean? Traditional development calls for a period of pre-leasing or pre-sales, for any kind of project. Once a certain level has been reached, typically 50% - 70%, then it will qualify for a loan that will enable the project to be built. In the case of a speculative project, there is no pre-leasing or pre-sale period. Someone is so confident that that are building the property with no tenant lined up in the hopes that the construction will lure one quickly. It is risky in a weak market and should be the sign of better times. As Gromann points out, the commercial market is the last to recover from recession so clearly someone is betting on lots of office space being leased by the time this breaks ground. I hope they are right!!
Building business? Office building proposal first in a number of years
http://articles.sun-sentinel.com/2013-12-31/news/fl-boca-new-office-space-20131227_1_office-building-proposal-office-space-building-business
Orin Rosenfeld
President
Rosenfeld Realty Advisors
9858 Glades Rd. Suite 209
Boca Raton, FL 33434
No comments:
Post a Comment