Opportunity is knocking — right here in our terrific Lake County commercial real estate region. It’s a very good time to buy for a variety of investor-friendly reasons. And that means it’s also a good time to sell.
The gap between Lake County commercial real estate prices and those of adjacent counties is greater now than historical patterns, and I believe that gap is going to close in the next few years. Buying now for a 10-year investment with values that could favorably escalate in just two to three years would be a very smart move.
Why? Here are a few important points to consider: Many more owners are now open to financing the note for buyers willing to make a somewhat higher down payment; financing is low at a favorable and friendly 5-6 percent; land available for development is on the rise; and, there is an amazing sale price range — from $200,000 to $4.7 million — on attractive properties for buyers of all capabilities. If you have been looking for enhanced incentives, our county is certainly offering them up at this point in time.
First-time buyers have some unique challenges, and are often seeking specific combinations for function and convenience. You might be interested in buying for an owner-occupied enterprise. Perhaps you are interested in live-work space. It’s a really good time for both, and you will find both in this marketplace, where our properties are still affordable.
In the face of apparently rising prices in adjacent counties, it’s important to take a hard look at the advantages here — while they hold. Regions in transition are rich in opportunity because all aspects of the commercial market are affected by growth, renovation, reconstruction — and all the changes that go with transitional challenges. Some businesses have been hoping for a market suitable to support expansion and have been preparing for just the opportunities that are now available. However, as with all seasons of opportunity, action is what will allow you to profitably take that advantage, before the very competitive gap closes.
Sellers who have been waiting for the right timing have been watching the trends. Balancing the cost dynamics that bring sellers and buyers together at the right juncture isn’t just by chance. Investors recognize a sea change when they see it. Sellers need to be ready with accurately priced and presented properties.
What’s hot in Lake County commercial real estate? The advantages cited above, and their relationship to the overall motion in the greater regions around us.
Most of us can point to an area where we experienced or observed a striking change, significant growth and a strong positive leap in its economy. In my opinion, Lake County is poised for one of its biggest growth and improvement strides. All the signs are present. Take the time to investigate from all perspectives: Investing, buying and selling.
Watch for my next column where I will shine some light on how everything is negotiable.
Jim Magliulo is a licensed Lake County commercial real estate professional who may be reached at Country Air Commercial (707) 263-5729
