There are two kinds of Commercial Real Estate in every developed community. When both aspects are robust, functioning on target and efficiently delivering on economic expectations, that community thrives!
“ Established” Commercial Real Estate is commercial real estate that consists of established community businesses, operating in the black and providing the community with a balanced inventory of enterprises. Having a commercial sector that offers a reasonable supply of products, practical services and the professional services needed by its population, is critical to the success of that community.
“Transitional” Commercial Real Estate is commercial real estate in the process of “buy and sell.” Transitional commercial real estate is the segment of the region’s commercial inventory that is in flux, so to speak. With the activity of buy or sell, opportunities abound in terms of reinforcing what the community needs, not over-saturating with more of a specific venue than the community can support, and establishing realistic value and pricing.
Keeping both aspects in balance enhances all community property — commercial and residential. In order to develop, maintain and grow an economically healthy community, both the established commercial real estate and the commercial real estate in transition must function with broad considerations. Experienced commercial realtors must take into consideration the inventory of the established business community. What venues are needed? What venues are saturated?
For the transitional aspect (the buy and sell) to cycle in balance, the community must be looked at as a whole.
Established and transitional commercial real estate aspects have certain essential motivations in common. For example, for established businesses and practices to thrive they should probably agree on basic considerations. One way to establish guidelines would be through a business association with procedures for attracting their market and knowing what customers and clients need. Cooperative presentation and promotion can make a huge difference.
The transitional aspect of commercial real estate is tasked
with knowing their market, motivating buyers or sellers based on both the community status quo and its future growth projections. A healthy community is one where the commercial aspect provides and sustains its share of the needs of the population: a reasonable sales tax base, the desired products and services, growth aligned with sustainability.
A very important part of community balance depends on the end goals of that community and the commitment to promoting and achieving those goals. For instance, if a community (such as our county) is promoting itself as a destination, it is important for the community to fulfill the promise! (Motivating tourism and visitors is roundly defeated if the community’s commercial aspect maintains short hours or shuts down on weekends!)
Inconsistency (or erratic participation) supporting stated goals harms the success of the community’s established commercial real estate — the up-and-running businesses. To succeed, the transitional aspect — the buying-and-selling — takes its cue from the goals and commitments of the established, and looks for clear, supportable guidelines. The connection is easy to see!
Healthy and robust Commercial real estate activity—established and transitional — is, essentially, the lifeblood of any community!
Jim Magliulo is a Lake County commercial real estate agent and can be contacted at 707-263-5729 or jim@countryair.com. You can also view his website at www.countryaircommercial.com
