Things are looking up for Massachusetts retail property investors, but total returns still depend a lot on property management.
Between healthy retail sales, demand for space, investment capital and new opportunities 2013 promises to finish on a bright note for commercial real estate investors in the Massachusetts retail sector regardless of the weather.
It’s no secret that the masses have been holding tightly onto their cash for several years. With the clouds of uncertainty cleared and individuals tired of playing it too safe while suffering poor returns there is expected to be some serious currency exchanging hands over the next few weeks.
Analysts in November report by Venture Beat forecast a $5 billion sales weekend for Black Friday through Cyber Monday. This will provide a nice boost to retail sales for the quarter and is expected to set a new record. For those commercial real estate investors with bumps in their leases for sales volume and tenant performance this can be a great thing.
At the same time investors can still find their own holiday sales bargains in the property market. Recent years of stress and rebound have led to great disparity with some commercial properties booming, while taking away tenants and traffic from others. Those are now ripe for rebirth and reinvention.
Retail property investors are also finding much of the capital out there is hungry to be invested. Between crowdfunding, partnerships, year-end bonuses and the rush to put money into self-directed IRAs cash is bountiful. Financing from commercial lenders continues to flow too with rates still attractive and new hybrid loan types emerging, and competition to push money out there door heating up.
Still, while it may all appear like easy going for now experienced commercial investors know all too well that property management is going to make all the difference. It can be seen in who is up and down now, will continue to separate who will win the best leases over the next year, and who will see the best returns over next 3-10 years.
So screen and select a local, full service property management firm with a solid track record of performing properties.