Q4 2013 Real Estate Report
LA Real Estate Reporter: A Brief Synopsis of Local Real Estate Issues
By Stuart Beilinson
Signs point to Yes
More and more statistics suggest the road to recovery is well on its way. West Los Angeles may have endured the worst and the sun seems to be rising again. Quite good news for many of us. The big question is, How Does One Capitalize on This? It is quite a paradox, because if one acts too soon, there is concern about getting 'burned', but if one waits, they will lose the great financing rates being offered. Further, as the economy improves, prices begin to rise. Ideally, one wants to conduct their real estate transactions at the 'crest of the wave', in order to best take advantage of good prices and low interest rates. As demand increases, both of these factors become of greater concern because interest rates will soon begin to rise, and the stronger the economy is, the more likely that prices will begin to rise. It is most important to work with knowledgeable professionals with the expertise to negotiate the best price available.
This is critical to both buyers and sellers. Real Estate owners may think it is in their interest to sit on a property until the market rebounds, but then they will be placed in a dilemma when they re-invest as they will end up paying higher prices for a property with the same future potential. This is a most ideal time to consider a move --before everyone else realizes where we are headed, before the competition comes to the same realization that you have.
Just the Facts, if you please
Recent surveys indicate a significant increase in multi- family median asking price per unit as compared to last year (+9.8%) for Los Angeles. Multi-family sale prices have increased significantly as well, at 21.6% for the Metro area. While office, retail, and industrial have not yet done as well, with interest rates where they are, it may be a good time to capitalize on the recovery before statistics speak for themselves.
Best time to Buy?
If you are considering buying commercial real estate, then an informed buyer knows that timing is everything. From turnkey investments to distress sales, finding that 'right' property for you can make all the difference. A broker who 'does their homework', goes that extra mile to find just the right types of properties in which you are most interested, will leave you with the confidence to make the smart decision on where to invest. But rest assured, that 'just right' property is out there, and a competent broker will find it.
Timing the market to Sell?
Should you be considering selling your commercial real estate investments, then an informed seller knows that timing is everything. That's why it is so crucial to work with an experienced broker.
Everyone has external influences pressuring their real estate decisions, but it is most wise to try to attain an 'outside' perspective. A competent broker who works the area can make the most of the limited time you may have to make that transaction happen. It is not just important to remove the property from your inventory, but to do so at the best price possible. Best price may require ideal timing to reach the right buyer. But rest assured, that buyer is out there, and a competent broker will find him.
Choosing the right Commercial Real Estate Brokerage for you
While there are numerous differences between real estate brokerages in Los Angeles, facts to consider include background, experience, office size, area of specialty. All of these play a part in choosing a Broker as well as how successful your endeavor to invest will be. National firms are often working from specific parameters that may not be ideal for individual investing. A very large firm can often be distracted by their 'major players' that dominate their time. Smaller real estate brokerages, on the other hand, may not have the background and experience needed to make sure you are getting the right advice. Working with the right commercial broker who both understands your needs and takes the time to find what you are looking for, is the best way to make the right investment. The 'right' broker will answer your concerns, leaving you comfortable that this is the smart direction in which to invest.