Real Estate Agent · Vineyard, UT · Member since 2020 · 14 posts · 1 vote
Hey BiggerPockets community!
I transitioned to being a commercial agent, and in hindsight, it seems I chose quite the challenging year to go all in on this venture. With current market conditions, there's a palpable sense of a potential downturn or collapse on the horizon.
How's the commercial real estate landscape in your area? Are transactions still occurring or has there been a noticeable slowdown? Would love to get some perspectives from different markets.
What asset class are you working, @Bradley G Fagg? Here in Southern California, trophy properties are still doing well and still trading, though volume is down here like it's down everywhere.
I'm in commercial office space in Utah and everyone I call isn't interested in selling at a loss. They seem to think there value is down so not the time to sell. I feel a lot of office space here in Utah is not being utilized fully is an other reason. It also seems deals keep falling through due to banks asking for more money down. Is this a Utah only thing?
Definitely not unique to Utah. At least here in Southern California, the story is exactly the same (for most assets). For Landlords who don't have to sell, they're waiting out the storm, so to say. This is especially true for properties without debt.
Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
3y
The transaction volume is down considerably. It's not a great time to be a seller, but from the buyer's perspective there are still opportunities.
Generally speaking people are only selling right now because they have to. Previously, most folks were selling because they'd executed their business plans and it was time to cash out their return. Debt expiration is a common pain point for sellers right now, but it's not the only one. Some are selling for familial, partnership, tax, and other non-debt related reasons.
Real Estate Agent · WA · Member since 2021 · 254 posts · 173 votes
3y
It's hard right now because of interest rates - because the cash flow doesn't cover the debt service. My best advice is to find anything that may have a lot of disorder with it such as late mortgage payments, foreclosure, fixers, etc. That is only where the real opportunities lie in this economic stage but granted they are hard to find. Also, try to gather as many off-markets that at least breakeven.
Real Estate Broker · Los Angeles · Member since 2014 · 74 posts · 36 votes
2y
What asset class are you working, @Bradley G Fagg? Here in Southern California, trophy properties are still doing well and still trading, though volume is down here like it's down everywhere.
What asset class are you working, @Bradley G Fagg? Here in Southern California, trophy properties are still doing well and still trading, though volume is down here like it's down everywhere.
I'm in commercial office space in Utah and everyone I call isn't interested in selling at a loss. They seem to think there value is down so not the time to sell. I feel a lot of office space here in Utah is not being utilized fully is an other reason. It also seems deals keep falling through due to banks asking for more money down. Is this a Utah only thing?
What asset class are you working, @Bradley G Fagg? Here in Southern California, trophy properties are still doing well and still trading, though volume is down here like it's down everywhere.
I'm in commercial office space in Utah and everyone I call isn't interested in selling at a loss. They seem to think there value is down so not the time to sell. I feel a lot of office space here in Utah is not being utilized fully is an other reason. It also seems deals keep falling through due to banks asking for more money down. Is this a Utah only thing?
Definitely not unique to Utah. At least here in Southern California, the story is exactly the same (for most assets). For Landlords who don't have to sell, they're waiting out the storm, so to say. This is especially true for properties without debt.
Investor · Salt Lake City, UT · Member since 2019 · 339 posts · 126 votes
2y
I live in Utah and work with investors nationwide and Office is not a good place to be in right now for many reasons(people working from home, rates, sellers not wanting a short sale, etc.). In Utah I would focus on 4+ unit commercial.
Rental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes
2y
Office is down in South Dakota as well. Those that are selling are in a bind and usually have a large vacancy. With so few office tenants, the sellers are all looking for that owner/operator who will need exactly what they are selling. Class A office is still doing pretty good as I suspect that many companies are just building their preferred layout.