Sequoia Realty Market Update - May 2014

May 2014 Sequoia Market Update

Contents of this Newsletter

Personal Service with Strong Analytic Support - Rick Ferris

Recent Deals by Sequoia Realty Corp.

               - 7575 Tyler Blvd, Mentor - 28,800 Sq.Ft. Small Business Park  - SOLD

New on the Market at Sequoia Realty Corp. 

               - 203 High St., Faiport Harbor, OH - 3,947 Sq. Ft. Restaurant - For Sale @ $295,000

REDUCED PRICE! Properties at Sequoia Realty Corp.

              - Newell St., Painesville, OH - 13+ Acres - Industrial Land - $160,000!!!

May 2014 Sequoia Market Update

Personal Service with Strong Analytic Support


Dear Friends,

At Sequoia we most value personal relationships. This has been the core of our business for decades.  Nothing is as valuable as gaining the respect and confidence of our clients.

In support of that we also offer robust market analytics to aid in decision making.  One of the most common questions that I hear is "What is this building worth?”  As we all know from the past 10 year roller coaster, it’s a moving target.

Right now for example, in the Lake County industrial market, the vacancy rate is falling quickly and there is virtually no new construction in the pipeline.  See the table below.

When the market vacancy in a certain property type falls below 7%, then buyers and tenants find it difficult to find a space that fits their needs.  If they need to move, they may be forced to take a space that does not completely fit what is optimal for their business.  Alternately, there is the option of building a new building.  This option typically takes close to 12 months with the planning, design, approvals and construction required.  Also, new construction is estimated at nearly a 40% price premium versus existing construction!  

In addition, of course the lease and sale price on existing building inventory rise as vacancy falls.  This price increase is generally triggered at about that same 7% market vacancy threshold.

From the figure above, you can see that this market is now at about 4.5% vacancy, and it is falling fast.  The longer that relocation decisions are postponed, the less options will be available in the market and the more expensive those options will be.

Would this type of information help you in making critical real estate decisions?

If so, I am happy to share the analytical information that we have.  We track the entire greater Cleveland marketplace--from Avon to Ashtabula, Medina to Akron--including industrial, office, retail, and investment properties.

Let me know how I can help you, or someone that you know, make an informed real estate decision.  I look forward to working with you!

Rick

PS. If you want to know "What is this building worth?”, just give me a call!

Richard Ferris, CCIM, MBA
President
440.946.8600 x103
Rick@SequoiaRealty.com

Recent Deals by Sequoia Realty Corp.

 7575 Tyler Blvd., Mentor, OH
 28,800 Sq.Ft. - 3 Multi-Tenant Office Buildings
   - SOLD

 7338 Mentor Ave, Mentor, OH
 1,050 Sq.Ft. - Retail/Restaurant
   -LEASED

 

 9952 Johnnycake Ridge Rd., Concord, OH
 1,776 Sq. Ft. - Retail Unit
   -LAST UNIT LEASED!

 8334 Mentor Ave., Mentor, OH
 707 Sq.Ft. - Office Unit - LEASED
  -Additional Office Space Available - Contact us today!

201 Water Tower Dr. Madison, OH
9,100 Sq. Ft. Office/School Building
  -LEASED

New on Market at Sequoia Realty Corp.

 NEW ON THE MARKET!

 203 High St., Fairport Harbor, OH

 3,947 Sq. Ft. -  Restaurant
 For Sale @ $295,000
 For Lease @ $1,100/mo. (NNN)

 

 NEW ON THE MARKET!

 23889 Lorain Rd., North Olmsted, OH

 2,060 Sq. Ft. - Retail Building
 For Sale @ $109,000

 NEW ON THE MARKET!
 
 771 S. Broadway, Geneva, OH
  
1,000 Sq. Ft. Dave's Cosmic Sub - Restaurant Business for Sale @ $95,000

 NEW ON THE MARKET!
 
 29374 Lorain Rd., North Olmsted, OH
  
 3,868 Sq. Ft. - Retail/Auto Related For Sale @ $340,000
 For Lease @ $3,400/mo


REDUCED PRICE! Properties at Sequoia Realty Corp.

 Newell St., Painesville, OH

13+ Acres - Industrial Vacant Land
  For Sale @ $400,000

 PRICE REDUCED to $160,000!!!

 777 S. Broadway, Geneva, OH
 BUSINESS OPPORTUNITY
 1,500 Sq. Ft. - Georgio's Pizza Restaurant
 Well Respected Franchise Location
  For Sale @ $178,000

 PRICE REDUCED to $64,500!!!

 

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Drastically Reduced Georgio's Pizza Restaurants or BEST OFFER! - Madison & Geneva, OH

Sequoia Realty Corp. 7464 Mentor Ave. Suite 205 Mentor, OH 44060 440.946.8600 Georgio's Pizza Restaurants Priced to Sell!   Two Great Locations! Geneva, OH & Madison, OH Delivery & Carry-out Only Well Respected Franchise Locations Located in the Busy Shopping Districts Madison, OH Location for Sale:$178,000 $65,000! Geneva, OH Location for Sale: $150,000 $75,000! "or BEST OFFER!" Price has been Drastically Reduced! Contact Rick Ferris for additional information today!                                                                 Richard B. Ferris                                                     Rick@SequoiaRealty.com                                                        440.946.8600 ext. 103       7464 Mentor Ave., Suite 205, Mentor, OH 44060 Phone: 440-946-8600 | Fax: 440-953-4500 www.SequoiaRealty.com

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New Pizzeria Coming to Mentor!

In October 2013, Sequoia Realty Corp. helped Mark Gaspar purchase the building at 7345 Center St. (rt.615) in Mentor, OH. Today, the building is being transformed into the next hit pizza restaurant set to open in mid-May. Click on the link below to read an article written by Jean Bonchak of the News-Herald about the owners, their other restaurant locations and what they will bring to Mentor, OH.

http://www.news-herald.com/general-news/20140408/slice-setting-up-to-serve-pizza-other-specialties-in-mentor#we-recommend

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Sequoia Realty Newsletter - March 2014

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

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

7575 Tyler Blvd., Mentor, OH
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

 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)

 
 NEW ON THE MARKET!

 33901 Chardon Rd., Willoughby Hills, OH

 1.75 Acres - Development Opportunity
 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. 

 

 Madison, OH - BUSINESS OPPORTUNITY
 1,231 Sq. Ft. Pizza Restaurant
 Well Respected Franchise Location
  For Sale @ $178,000

 PRICE REDUCED to $124,999!!!

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