Lake County >> While there are plenty of empty storefronts around Lake County, commercial real estate agents suggest that interest in properties is growing. Jim Magliulo says one big trend in the Lake County market comes from out-of-county clients looking to build their portfolios.
The Country Air Commercial agent said he’s had a lot of interest from outside investors looking to purchase income-producing properties. The long-term leases, such as that of an occupied office space, are more appealing to them than vacant properties.
Sales for Magliulo improved last year and he expects the repeat success for 2015.
Shore Line Realty, Inc. broker Janice Mashek who’s worked in Lake County for more than 30 years said there’s a large mixture of property types in the area, from resorts to shopping centers and warehouses.
“Storage units are an area that people are looking at because it’s pretty easy income,” Magliulo said. “Also hot are mobile home parks,” as well as warehouses for owners/users.
The biggest barrier to entry, according to Magliulo, is high-cost listings.
“People are over pricing properties, and they’re not moving, he said. “(Investors) are not going to pay high-premium prices for resorts. Many need quite bit of work.”
Prices range anywhere between $300,000 to $1 million, which Magliulo said has a direct affect on how long a listing stays on the market. Lake County commercial real estate properties in Magliulo’s experience tend to stay on the market an average of three-to-six months — three if they are well priced, six if the price seems too high, and that can turn into a year in some cases.
The bulk of Magliulo’s listings are in Lakeport and Clearlake. Soap Shack Baby owners James and Tiffany Meek focused their sights on the former when they decided to open their all-natural soap and beauty supply store.
“I live in Clearlake, but didn’t see much going on there for local businesses,” James Meek said. “Foot traffic there is hardly nothing.”
When the couple began hunting for a property, Meek agreed that rent was the deciding factor.
“Cost was a big challenge,” he said, “worrying if the decision you’re making will have the sales to back it up.”
Rent prices in Lakeport seemed reasonable, but “we were new and wanted to start small,” Meek said.
They settled at a location on the north end of North Main Street, but after a year decided to move to a spot farther down at 105 N. Main St., an area in downtown Meek said has considerably more foot traffic.
“We were looking more at cost instead of location at first,” Meek said, which he doesn’t recommend. “But we ended up getting here, it was well worth it.”
Sales are up for The Soap Shack Baby and Meek said he doesn’t plan on relocating after another year. In fact, he wants to stay there as long as they are in business.
If they take the leap to expand, Meek said Kelseyville is the next choice. Main Street in that community has a rustic atmosphere he said fits the hand-crafted products they sell well.
