Destino Industrial
  • Home
  • Properties
  • Services
  • Client's Advantage
  • Industrial Market Insight
  • About
    • Testimonials
    • About Lee & Associates
    • About Our Team
    • Contact Us
  • Home
  • Properties
  • Services
  • Client's Advantage
  • Industrial Market Insight
  • About
    • Testimonials
    • About Lee & Associates
    • About Our Team
    • Contact Us

3 Things to Consider When Deciding on Renting, Buying or Selling in 2016

1/14/2016

 
Picture
​Making a real estate decision can be an exciting yet challenging time.  It brings the prospects of recognizing appreciation gains, new opportunities and potential for growth, a more convenient and desirable location, a change in scenery, or the ability to have a more functional property.  However, in today’s market there are other factors that must be taken into consideration when deciding on renting, buying, or selling in 2016.  Let’s briefly look at 3 considerations when evaluating this decision.
​
1   Why are you making a change?
2   Market Cycles
3   Availability & Choices


WHY ARE YOU MAKING A CHANGE? 
Urgency, necessity, opportunity, or just for a change….?  Knowing why you are considering renting, buying or selling will provide more clarity on expectations. 

How does the reason for the change affect you? 
  • Knowing the urgency of this decision will help with pricing expectations.  
  • Necessity is sometimes out of our control and can impact urgency.  Make sure to work with a real estate advisor who understands the situation but does not disclose too much to the other negotiating party.  
  • There is great opportunity out there in the marketplace.  For Buyers, interest rates are still at historic lows.  For Sellers, as prices have rebounded from market lows, this could be a good time to realize that appreciation.  You may want to consider selling and then renting the same building with a sale lease-back.
  • If you are making a move just for a change, this may not be the market for that. Moving laterally (same size space) is generally not going to provide any cost savings in this market.  

Consider how urgency, necessity, opportunity, or change of scenery can affect your decision.
​
                                                                   
MARKET CYCLES: ​
Picture
Picture
Picture
Picture
Where are we in this current market cycle?   Despite an overall long term trend upward, real estate markets generally reach peaks and valleys approximately every 7 years.  By many economists' perspective, we have been trending up since around 2009 or 2010.  In either estimation, we are near a peak.  Demand is high right now and availability is low.

How does the current Market Cycle affect you? 
​
(a)  If looking at selling or leasing your property in the next 12-36 months, now is a good time to do that.  Determine how a 15% correction could affect the value of your property. 
(b) If looking to purchase a property, you must have a long term outlook.  Again, there is also the advantage of historic low interest rates which will allow you to pay down your mortgage faster.
(c) If looking to rent (tenants), consider negotiating a shorter term lease to be in a position to renegotiate at the next reset in the market.

Understanding the current Market Cycle and how that affects you in the short-term and in the long-term can be the difference in making the right choice now.

 
AVAILABILITY & CHOICES: 
​Presently, in the industrial real estate market in southern California, availability and vacancy are low, new construction is limited, and choices are few.
  

How does Market Availability affect you? 
  • For starters, consider a wider geographic area target. 
  • Secondly, renting, rather than buying, will generally provide more property options to consider.  
  • Lastly, if renegotiating and extending your tenancy at an existing location is an option, consider that alternative and revisit the search for a new location when the market cools down and more choices become available.

Recognizing the availability in the marketplace and your options will help you to choose your next steps wisely.


Comments are closed.

    Author

    Christopher J. Destino, SIOR, a Principal at Lee & Associates,  is  an engaging, responsive professional who enjoys working closely with his clients and helping them succeed.

    Contact  Christopher 
    Today!!

    Picture

    Additional Market Articles and Reports 
    (click here for archive)
    Picture


    ​Industrial Insight Archives Below

    January 2023
    December 2022
    October 2022
    September 2022
    August 2022
    June 2022
    April 2022
    March 2022
    February 2022
    December 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    March 2021
    February 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    November 2019
    October 2019
    August 2019
    July 2019
    June 2019
    April 2019
    February 2019
    January 2019
    December 2018
    November 2018
    September 2018
    June 2018
    April 2018
    March 2018
    February 2018
    December 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    September 2015
    June 2015
    May 2015
    March 2015
    January 2015
    October 2014
    July 2014
    March 2014
    December 2013
    October 2013
    August 2013
    April 2013
    September 2012

    Categories

    All
    Merry Christmas
    Sublease

“Working with a Professional  
​
Achieves Professional Results”
Picture
Lee & Associates
Commercial Real Estate Services

1004 W. Taft Avenue, Suite 150 
Orange, CA 92865
​LeeOrange.com
Corporate ID #01011260 

Picture
Christopher J. Destino, SIOR
Principal
714.564.7181
cdestino@lee-associates.com
​Destino Industrial Team
DRE #01447060

Picture
Picture
Picture