March 2014 Sequoia Market Update
Contents of this Newsletter
Shifting Tectonic Plates - Danger & Opportunity - Rick Ferris
Recent Deals by Sequoia Realty Corp.
- 854 E. 185th St., Cleveland - 5,025 Sq.Ft. Retail Building - SOLD for $85,000
New on the Market at Sequoia Realty Corp.
- 201 Water Tower Dr, Madison - Office/School Building - For Sale @ $1,550,000
REDUCED PRICE! Properties at Sequoia Realty Corp.
- Madison, OH - Pizza Restaurant - 1,231 Sq. Ft. - $124,999!!!
March 2014 Sequoia Market Update
Shifting Tectonic Plates - Danger & Opportunity
Dear Friend,
We are in a rapidly shifting market! Some up, some down and some sideways.
First the good. The retail and industrial markets are recovering nicely in NE Ohio. We are seeing increased demand (both sale and lease) and lower vacancy rates. Already, there are some shortages in the market with some tenants and/or buyers not being able to find what they need. So they either stay put, try to fit into a not-so-good match or build.
With new building costs substantially higher than existing inventory, there will be "sticker shock" for the build option. Perhaps 20-50% more than purchasing existing.
Now for the bad. The office market continues in the doldrums for the most part. Although office employment seems relatively stable, the amount of office space per person is being dramatically reduced when offices are redesigned. Office hoteling and cafe spaces allow for significant reduction in individual desks and private offices. Therefor, we have an oversupply of office space, higher vacancy and lower rents (good for tenants).
Regarding investment properties, the market it still strong for investor returns. There has not yet been a full scale return to the market by small investors and therefor yields are higher than they were a few years ago. of course, that is bolstered by very low interest rates, which are bound to go up.
The exception to that investment rule is the apartment market, which is on fire. In fact we are seeing a record number of office buildings being converted to apartment buildings. This was basically unheard of in the past.
I would warn that the apartment market is over-heating in parts and beware of chasing deals where the return is less than your threshold. Especially with apartments and their associated cost surprises (in much of the Cleveland area's older housing stock).
So as you consider your next move or investment, I would love to be your guide. We provide proven on-the-ground market knowledge, analytics to make informed decisions and negotiation skills to get the transaction closed for you.
Let me know how I can help.
Rick
Dear Friend,
We are in a rapidly shifting market! Some up, some down and some sideways.
First the good. The retail and industrial markets are recovering nicely in NE Ohio. We are seeing increased demand (both sale and lease) and lower vacancy rates. Already, there are some shortages in the market with some tenants and/or buyers not being able to find what they need. So they either stay put, try to fit into a not-so-good match or build.
With new building costs substantially higher than existing inventory, there will be "sticker shock" for the build option. Perhaps 20-50% more than purchasing existing.
Now for the bad. The office market continues in the doldrums for the most part. Although office employment seems relatively stable, the amount of office space per person is being dramatically reduced when offices are redesigned. Office hoteling and cafe spaces allow for significant reduction in individual desks and private offices. Therefor, we have an oversupply of office space, higher vacancy and lower rents (good for tenants).
Regarding investment properties, the market it still strong for investor returns. There has not yet been a full scale return to the market by small investors and therefor yields are higher than they were a few years ago. of course, that is bolstered by very low interest rates, which are bound to go up.
The exception to that investment rule is the apartment market, which is on fire. In fact we are seeing a record number of office buildings being converted to apartment buildings. This was basically unheard of in the past.
I would warn that the apartment market is over-heating in parts and beware of chasing deals where the return is less than your threshold. Especially with apartments and their associated cost surprises (in much of the Cleveland area's older housing stock).
So as you consider your next move or investment, I would love to be your guide. We provide proven on-the-ground market knowledge, analytics to make informed decisions and negotiation skills to get the transaction closed for you.
Let me know how I can help.
Rick
PS. If you ever have a question, just give me a call at 440.946.8600x103. I'd enjoy talking with you.
Richard Ferris, CCIM, MBA
President
440.946.8600 x103
Rick@SequoiaRealty.com
Recent Deals by Sequoia
Property Address - Sq. Ft. - Leased/Sold
854 E. 185th St. Cleveland, OH
5,025 Sq.Ft. Retail Building w/ Full Basement
- SOLD for $85,000
5,025 Sq.Ft. Retail Building w/ Full Basement
- SOLD for $85,000
7575 Tyler Blvd., Mentor, OH
28,800 Sq.Ft. - 3 Multi-Tenant Office Buildings
- PENDING SALE for $900,000
28,800 Sq.Ft. - 3 Multi-Tenant Office Buildings
- PENDING SALE for $900,000
New on Market/ Price Reduction
Property Address - Sq. Ft. - Type - Lease or Sale Price
Property Address - Sq. Ft. - Type - Lease or Sale Price
NEW ON THE MARKET!
201 Water Tower Dr. Madison, OH
9,100 Sq. Ft. Office/School Building
For Sale @ $1,550,000
For Lease @ $15.90/Sq. Ft. (NNN)
9,100 Sq. Ft. Office/School Building
For Sale @ $1,550,000
For Lease @ $15.90/Sq. Ft. (NNN)
NEW ON THE MARKET!
33901 Chardon Rd., Willoughby Hills, OH
1.75 Acres - Development Opportunity
For Sale @ $629,000
For Sale @ $629,000
NEW ON THE MARKET!
9411 Mentor Ave., Mentor, OH
2,400 Sq. Ft. Dental Office (could be divided) For Lease @ $16.00/ Sq. Ft.
9411 Mentor Ave., Mentor, OH
2,400 Sq. Ft. Dental Office (could be divided) For Lease @ $16.00/ Sq. Ft.
Madison, OH - BUSINESS OPPORTUNITY
1,231 Sq. Ft. Pizza Restaurant
Well Respected Franchise Location
For Sale @ $178,000
1,231 Sq. Ft. Pizza Restaurant
Well Respected Franchise Location
For Sale @ $178,000
PRICE REDUCED to $124,999!!!
