Commercial Real Estate Trends

12 Replies

Hello everyone,

I have been looking into Commercial Real Estate somewhat in the recent weeks and I have been looking at the historical trends of certain areas that I live around. I currently invest in SFR; however I would eventually like to get into multifamily units.

I was recently looking at a site called loopnet.com and it showed commercial trends from 2006 to the present, and wanted to get a consensus on what websites are creditable for this type of information involving trends for commercial real estate. I want to see if anyone uses the site that I listed above, or if not, what site do you use. 

Thanks,

Peter 

Loopnet is the most common along with Costar.

Originally posted by @Greg V.:

Loopnet is the most common along with Costar.

 Costar acquired Loopnet a couple years ago.  I use Loopnet. 

Peter,

Costar is a better site, but also requires high payment to get information.  Loopnet will provide significant info for free, but you get what you pay for.

Mark

Loopnet also has tiers of paid subscriptions. I've gotten good value, especially on the leasing side. 

I personally really like Marcus and Millichap reports.  I did work for them many moons ago so I might be biased but the reason I really like them is my Scottish blood likes the price.  Free haha.

The urban land institute annual emerging trends report is really epic as well.

http://uli.org/research/centers-initiatives/center-for-capital-markets/emerging-trends-in-real-estate/

Thanks for all the responses, it helps out a lot to get a few different thoughts to confirm information! 

@Jon Klaus  

@Mark Creason  

@Greg V.  

Hey guys, 

I had one last question on the loopnet creditability topic and wanted to see if any of you use the Cap Rate that is shown for the properties for sale on that website as a point of reference while skimming through the website to look at possible prospects. Either way let me know.

Thanks,

Peter 

Nope. If you know your target area well enough, you know the prevailing cap rates and what you can get for rents. Once you get the leases and tax returns from the seller, you can calculate yourself. I don't even look at what the seller lists as the cap rate.

I should add that I really only look at value add properties that are half vacant to fully vacant so listed cap rates matter even less in those.

Peter,

Something to watch out with any offering is how is the cap rate calculated. I see deals all the time that the OM is misleading. Many will not include a management fee. I see gross leases listed as NNN. Will see properties listed as having a 15 year firm term lease, but you end up wasting time when you spend an hour to find out they have 4 years left. Buyer beware on any of these sites.

Mark

Thanks guys for the great information above. I also use loopnet as a free user and this information definitely helps. I did have a question for anyone who subscribes for the monthly paid, are the better listings/more listings subscriber only? Quite a few of the properties are invisible to me as I am not a subscriber and wanted to know if it was really worth it?

Prince 

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