A look at com­mer­cial r.e. trends

Home - Santa Fe Real Estate Guide - - NEWSFROMSFAR THEREVERSEMORTGAGE - PACO ARGUELLO

Ac­cord­ing to a re­port from the Na­tion­alAs­so­ci­a­tion of Real­tors (NAR), for­eign buy­ers con­tinue to see the U.S. real-es­tate mar­ket as a se­cure and safe in­vest­ment. The re­port also found that Real­tors (NAR mem­bers) are ex­pe­ri­enc­ing an in­crease in the num­ber of in­ter­na­tional clients over the past five years.

NAR’s 2018 Com­mer­cial Real Es­tate In­ter­na­tional Busi­ness Trends re­port an­a­lyzed cross-bor­der com­mer­cial real-es­tate trans­ac­tions made by Real­tors dur­ing 2017. Ac­cord­ing to the re­port, of the 59 per­cent of Real­tors who in­di­cated they com­pleted a com­mer­cial real-es­tate trans­ac­tion last year, 18 per­cent re­ported clos­ing a deal for an in­ter­na­tional client. Real­tors have ex­per­tise and knowl­edge work­ing with clients from dif­fer­ent coun­tries and their real-es­tate prac­tices. In­ter­na­tional buy­ers find that us­ing a Real­tor is a real ad­van­tage and they can rely on their global mar­ket per­spec­tive.

The study found that most Real­tors who spe­cial­ize in com­mer­cial real es­tate re­side in smaller com­mer­cial mar­kets where the typ­i­cal deal is less than $2.5 mil­lion. Gen­er­ally, U.S. for­eign in­vestors are at­tracted to smaller-sized prop­er­ties in sec­ondary and third-level mar­kets, help­ing the pro­file of smaller com­mer­cial mar­kets to grow.

Real­tors’ in­ter­na­tional clients found U.S. com­mer­cial real-es­tate mar­kets to be a good value last year. Sev­enty per­cent of Real­tors re­ported that in­ter­na­tional clients view U.S. prices to be about the same or less ex­pen­sive than prices in their home coun­try. The me­dian com­mer­cial trans­ac­tion was $625,000. Over 37 per­cent of in­ter­na­tional clients who chose not to buy cited lack of in­ven­tory as a main rea­son, echo­ing broader trends in U.S. mar­kets.

The top coun­tries of origin for buy­ers were China (20 per­cent), Mex­ico (11 per­cent), Canada (8 per­cent) and the United King­dom (6 per­cent). Sell­ers were from Mex­ico (20 per­cent), China (15 per­cent), and Brazil and Is­rael (both at 10 per­cent). Florida and Texas were the top two states where for­eign­ers pur­chased and sold com­mer­cial prop­erty last year, with Cal­i­for­nia be­ing the third most pop­u­lar buyer and seller des­ti­na­tion.

For­eign buy­ers of com­mer­cial prop­erty typ­i­cally bring more cash to the ta­ble than those pur­chas­ing res­i­den­tial real es­tate. Sev­enty per­cent of in­ter­na­tional trans­ac­tions were closed with cash, while NAR’s 2017 res­i­den­tial sur­vey found that half of buy­ers paid in cash.

The Santa Fe As­so­ci­a­tion of Real­tors sup­ports its com­mer­cial mem­bers through a Com­mer­cial Coun­cil that meets ev­ery other month. The coun­cil typ­i­cally meets at com­mer­cial prop­er­ties for sale or lease, of­fers a prop­erty needs and wants dis­cus­sion, and a speaker on a topic of in­ter­est to mem­bers. SFAR earned its Com­mer­cial Ac­cred­i­ta­tion from NAR in 2011 for achiev­ing bench­marks and en­gag­ing mem­bers at a high level of com­mer­cial ser­vices. The as­so­ci­a­tion has also been suc­cess­ful at gar­ner­ing NAR Com­mer­cial In­no­va­tion grants to sup­port com­mer­cial con­fer­ences and bus-led prop­erty tours.

NAR’s com­mer­cial com­mu­nity in­cludes com­mer­cial mem­bers, real es­tate boards, com­mit­tees, ad­vi­sory boards, coun­cils and fo­rums; and NAR com­mer­cial af­fil­i­ate or­ga­ni­za­tions: CCIM In­sti­tute, In­sti­tute of Real Es­tate Man­age­ment, Real­tors Land In­sti­tute, So­ci­ety of In­dus­trial and Of­fice Real­tors, and Coun­selors of Real Es­tate.

Rubel “Paco” Arguello is a Santa Fe na­tive and chief ex­ec­u­tive of the Santa Fe As­so­ci­a­tion of Real­tors.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.