Salem Commercial Real Estate Posts

Group Photo at Riverfront Park in Salem, Oregon. 

There are already signs warning us of a downturn. For example, when cap rates have been decreasing on investment properties, (and they've now plateaued and they haven't been getting lower for a while) it is possible that we have hit the market peak. History tells us that the next major move will most likely be down. 

Our region has a lot of vacant commercial property on the market, but it still can be hard to find that perfect space.  When pricing the space, your real estate professional is your best resource.   Sometimes, owners think that initially setting the square foot rate high is a good strategy.  This can be problematic...

While Oregon didn’t follow the voting trend, we are still wondering what this means for commercial real estate? Well, we've probably never had a President who has as much personal investment in commercial real estate doing well as Donald Trump does. He owns a lot of commercial property, and if the market goes south, he's going to take a big hit with his personal wealth.

For example, if during the holiday months an owner is getting fewer offers on a property, or maybe they're getting no offers at all on their property, this could get them more interested in negotiating to make a deal on the very next offer that comes in.

In the DIY (do it yourself) age, You can bypass the taxi for Uber, skip the travel agent for Expedia®, find a room in Vegas with Airbnb. Yet, when embarking upon one of the biggest investments in your life, purchasing a commercial building, finding a tenant or leasing a new space, you do not want to be all alone.

Investing in your curb appeal will directly increase your bottom line, meaning higher rents or a higher sales price.

Then in putting all of this together, investors will want to know the “cashon-cash return,” which is the annual cash flow divided by the down payment for the property.

Ground leases can be complex and are significantly different from a commercial office or retail lease. When considering any of these kinds of leases, always contact a professional commercial real estate broker.