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APRIL 2017

Southwest Florida BUSINESS TODAY

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COMMERCIAL RE MARKET A look at commercial real estate trends and topics in Southwest Florida

Real Estate is not black and white but every color of the spectrum Real Estate investments are as different from each other as every flake of snow is different from each other. Yet, just as all snowflakes look alike when in a meadow, most people similarly think real estate is the same. Beauty is in the eye of the beholder and that is why all real estate sells to someone at some point—from the most beautiful to the ugliest. But, no two properties are the same. Most people who are investors want the ultimate deal that will guarantee them a profit. Businesspersons need functionality and location. If they can afford aesthetics then all the better. Residential buyers are thinking about either a home to live in while growing memories or how to turn a quick buck! We get comparisons of local sales to try to establish value, but who does that help? Generally the seller, because they are always afraid they left a dollar on the table. The saying goes, “A rising tide floats all boats” and that may indeed be true. What happens when all the boats are at their highest point and you decide to be the last one into that harbor because you do not know where we are in the current real estate cycle? You could be in for a very long hold period. Low tide is assuredly coming. Real estate from every perspective is an ebb and flow. It takes an expert who

really knows the real estate cycle to be able to pilot one through the waves and through the storms. If the 2000s taught us anything about real estate investing, it is that whole countries BY RANDY KRISE and even whole worlds rise and Guest Columnist fall in that cycle. I personally know many people who lost their shirts both commercially and residentially owning real estate in the last decade. Conversely, I have seen multiple fortunes made by people who were not afraid to keep investing and had cash to buy the properties that others had overpaid for and could not hold onto long enough to get healthy. I have seen the same piece of land go from $2.2 million in 2005 to $157,000 in 2011 back to $975,000 in 2016, all in the span of 6 years. The man in the middle got the best deal by far! Houses went from $350,000 all day long in 2006 to $50,000 in 2009 and now back to $300,000-plus in 2016, all in less than a 10-year span. I know a couple of people that swooped in and

Best Commercial Lot Values in Southwest Florida 25335 Rampart Blvd Port Charlotte 33983 Price: $1,195,000 Size: 4.30 AC Description: Partially cleared, no wetlands or endangered species on lot. Medical Office Space. Deep Creek has several ALF communities, private and public, including one Certified Nursing Community, adjacent to this site. Two major hospitals within 10 minutes of site. East border of the property is a large Housing Complex with future zoning of commercial in front. Plans available for 7 buildings, each 5,000 sq. ft.

Marion Ave Punta Gorda 33950 Price: $399,000 Size: 2.70 AC Description: Dense pepper hedge, no endangered species or plants, ready to clear. MAKE AN OFFER!!! Zoned Low Intensity Industrial. 2 parcels, one approximately .25 Acres, the other 2.7. Perfect for Warehouse, Storage Facilities, Truck or Auto Terminal Hub, close to Hwy 17 and I-75 exit. Railroad meets rear of property. I-75 Inter-change currently projected to cross eastern portion of property, high visibility once completed.

4214 Duncan Road (Hwy. 17) Punta Gorda 33982 Price: $995,000 Size: 6.84 AC Description: 2 lots, 1 - 5.3 Acre Parcel and 1 - 1.5 acre parcel, 6.8 Acres, partially cleared, environmentals done. This corner is a future Town Center. Just East of I-75. Many usage possibilities, 6.84 Acres at Washington Loop. Over 150 sq. ft. Road Frontage on Duncan. Phase I reports available, survey also available. Future land use is Commercial Corridor.

For more information, contact:

Jeanette Igoe

Broker, Igoe Realty P.A. jigoe5@aol.com 239-572-3269 www.JeanetteIgoe.com

bought 200-300 foreclosed homes and made out like bandits. It is crazy but he who keeps investing wins no matter in which real estate product they choose to invest. Real Estate is a cycle. It always has been and always will be. That is why the true measure of investing is called the “Time Value of Money.” How can you get a return worthy of the investment and how long do those dollars need to stay in the investment to get a return? Sometimes the investment is a steady safe return and every now and then you hit a home run. But the investor needs to understand that every so often you strike out. No one bats 1,000. Do not be afraid to get some help from a professional. You think you might pay more but that is generally

not true. If you saved half the commission on a $500,000.00 buy you saved $12,500 to $15,000. There is a saying in business: “You can’t save yourself into prosperity.” I say a professional should be able to find the deal that is 10-15 percent below market. Your minimum increase is $35,000 in a year because you bought the right investment (that is crediting back your perceived cost of half the commission). When it comes to investing, remember that you make your money when you buy, not when you sell, the property. Randy Krise, CCIM is the Broker Owner of Krise Commercial Group in Fort Myers. Randy can be reached at randy@krisecg.com or by calling (239) 633-8672.

April 2017 Southwest Florida Business Today  

Southwest Florida's Business to Business publication

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