They are talking about REITs and commercial properties, but an interesting parallel to what we see over on the residential side – the trophy properties are hot, and the inferior houses/locations are not:
Jim Klinge
Klinge Realty Group
Broker-Associate, Compass
Are you looking for an experienced agent to help you buy or sell a home?
Contact Jim the Realtor!
- 682 S. Coast Hwy 101, Suite #110
Encinitas, CA 92024 - (858) 997-3801 call or text
- klingerealty@gmail.com
CA DRE #01527365, CA DRE #00873197
Coincidental timing of the video post as last week we began the securities filing process for a new California property offering.
The story mirrors what we’re seeing on the ground in commercial as well. We have been effectively on the sidelines for 4 years waiting to start edging back in until we found good cash flow with little if any debt.
We wanted to let as much of the peak period leases (2005-2007) begin to rollover at lower levels so we could layer a higher cap rate onto the effective lower market rents. This has caused our valuations to be 40%+ lower than the peak values.