As the commercial real estate recovery continues and market conditions improve, investors are taking advantage of important opportunities. David Mashian, Regional Manager with Sperry Commercial, discussed the exercise of investment options at the April Commercial Marketing & Networking Session produced by the BHGLAAR Commercial Real Estate Committee.

David noted that as interest rates rise, investors looking for inflation hedges are strengthening their positions in commercial real estate, a hard asset. Buyers comment that they enjoy commercial property value appreciation, tax shelter advantages, and leveraging their investment with borrowed money.

Many buyers consider “good deals” to have strong cash flow, attractive location, value added (upside potential), and low management effort and cost. Investment strategies employed include searching for quality properties with “true value” (solid fundamentals) and healthy cash flow, implementing a “buy and hold” scheme with a predetermined exit strategy, and also being sure not to deviate from a successful investment plan.

Multifamily continues to be an important investment instrument for buyers. David reiterated the interest in industrial properties because of the solid growth fundamentals exhibited by this market segment. As consumer confidence improves, retail properties are being snapped-up by savvy investors. The office property market section is also offering opportunities as occupancy rates improve.

To learn more about commercial real estate acquisitions and investments, take advantage of the many resources and events offered by the BHGLAAR Commercial Real Estate Committee. Visit BHGLAAR.com or call the Association at (310) 967-8800.

Brian Brubaker, Chairman

BHGLAAR Commercial Committee