This month’s newsletter has just been released!
Check out the latest tips for tenants and users of commercial real estate space.
In this issue
- Reasons For 1031 Exchange
The real estate exchange takes more patience and hard work to set up a successful exchange than it does to arrange a straight purchase and sale. Some property owners and their agents simply do not understand the benefits of an exchange or are worried about the strict requirements imposed by the Internal Revenue Code. - Commercial Development Rights of Way
In many metropolitan areas, commercial land for development is in very short supply. Developers are converting older warehousing to shopping areas, demolishing existing buildings to build new projects in areas in transition. However, there may be many hundreds or even thousands of parcels of property that have been overlooked. Many are ready for commercial development close to downtown areas, suburban commercial developments, and densely populated areas. Owners of many of these properties consider the property as “surplus” and have not considered development. - Investing In Self Storage
Self-storage facilities (originally known as mini-warehouses) are relatively new investments compared to apartments, office buildings, retail or industrial. Approximately 50 percent of the current inventory of space has been built in the past 10 years. This has been the result of increased demand, with the number of people using self-storage having increased at a pace faster than population growth. A recent study showed that about 4.5 percent of the population use self-storage today vs. only 2.5 percent in 1985. This may be because of the increasing mobility of the population, requiring people to store possessions for various lengths of time. - Campus Apartments
When an owner has an apartment property near the campus of a university, there are particular problems. The competitive situation dictates that leases be offered for one semester of nine and a half months. A twelve-month lease for students is virtually unheard of. That means there are lots of vacancies as soon as final exams have ended. (This does not apply to a few university communities where there is always an apartment shortage. In those few places, the student must lease for 12 months or have no lodging.)
