Amid the rain clouds of today’s market, there may be a silver lining. With commercial real estate tanking, savvy CEOs can take advantage of the perfect storm and finally cash in on the soaked economy.
Second quarter national commercial real estate prices dropped 18.1 percent compared to the previous quarter, according to a study by the Massachusetts Institute of Technology Center for Real Estate. The plunge sunk the price index 39.2 percent below its peak in 2007. These falls add up to tremendous opportunity for space users.
“For the most part, the tenant or buyer is in the driver’s seat with declining values and higher vacancies,” says Alan Piker, managing principal of the Cincinnati office, CresaPartners LLC. “So, the opportunity for the user is significantly better than it’s been in recent years.”
Slashing real estate overhead — often a company’s second-largest cost — can provide a noticeable return on your bottom line. Whether you’re already pounding the pavement looking for a new pad or you haven’t yet evaluated your space, it’s worth exploring your prospects as the market continues to decline.