Photo courtesy of Cascade Business News.
President and principal broker, Pat Kesgard, CCIM was published in the Cascade Business News, April 18, 2018 issue with an article about where we are in the economic cycle as it’s related to local commercial real estate. Below is an excerpt of the article as published by CBN. Read the full article as published here.
“When buying and selling commercial real estate, timing is right up there with location. Much like with stocks, the goal is to buy low and sell high. With real estate though, there is also the consideration of maintenance, management and potential income. These are factors within the market but the economy also affects the return on investment. Considering where we are now in the economic cycle, approaching the peak of the bell curve on the left side, can be a scary thought to many. However, it’s a good idea to look at the factors surrounding that position in the cycle, giving the opportunity to be proactive in strategy.
“Unlike where we were ten years ago, we are not in a market where banks are loaning money to those who are not qualified. Since 2012 banks are required to lend only to qualified buyers and have worked to diversify their lending portfolios. These practices will help to ensure the banking industry doesn’t end up in the same position we were during the last two big downturns. Overall, the economy is in a solid position and businesses are doing well. Bend has low vacancy rates, but the surrounding cities in Central Oregon have plenty of opportunity for growth.
“We do believe there’s a downturn coming but the question is when and what it will look like? Our brokers at Compass Commercial Real Estate Services have had many conversations with owners of commercial real estate around this topic. We often hear questions…”
Read the full article as published in the CBN here.
Contact Pat Kesgard, CCIM for more information about commercial real estate industry by calling 541.383.2444.
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