Florida Commercial Real Estate Market Report

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Paul

Forsberg presents:

SW Florida Commercial Real Estate Market Newsletter


This Publication Presented by Paul Forsberg, Income Property Specialist and Broker for HG Real Estate Services. Welcome to the First edition of South West Floridas One and Only Commercial Real Estate Market Watch Newsletter. Getting Open, Honest and Timely Information about the local Commercial Real Estate market can be a challenge. The purpose of this newsletter is to provide you with a quarterly update of the South West Florida Commercial Real Estate Market. If you would like to see anything added to it, or have suggestions, please give me a call. This newsletter is about providing useful, timely information YOU can use. If you have a Commercial Real Estate need, Please give me a call and I will be happy to assist you in any way I can.

Seven Mistakes To Avoid When You Sell A Commercial Property


Just making ONE of these mistakes could cost you Tens of Thousands of Dollars ... E v e n t h o u g h i n v e s t i n g i n commercial property is becoming more and more popular, selling a commercial property correctly is like >inding an honest politician. Plus, when you put a property on the market at the time you Think may be The Right Time youre still subject to the little SURPRISES that can reach out & cost you thousands of dollars. Here is the short version of the seven most common mistakes sellers make: For FREE detailed information on the Seven Costly Mistakes Sellers Make Call 1-800-261-0454 ID#7020

Commercial Real Estate Investment Outlook


The SW Florida Real Estate Market EXPLODES into action in 2013 with some very impressive numbers.

The latest results from the NREI Investor Sentiment Survey show that investor confidence is not only surging forward, but investors also are preparing to accelerate their commercial real estate buying in the coming months. After taking a slight step back in second quarter, the Investment Sentiment Index moved five points higher to 171 in third quarter. That is a significant milestone as it marks the highest level the index has achieved since the survey first began in 2004. The Investment Sentiment Index measures investor views on key fundamentals such as improving occupancies, rising property values and plans to increase commercial real estate holdings. The index and broader survey results reinforce views that investors are gaining confidence in both the economic and

commercial real estate recovery. Unless you have been living under a rock, you cannot help but notice a HUGE increase in traffic, and an increase in business everywhere. Even if you dont actively follow the real estate statistics, you cant help but notice the busy roads, congested traffic and long lines in grocery stores and restaurants. SW Florida Is Busy! More on Page 3

2012 by Paul Forsberg CCIM Candidate

All rights reserved ! !

Page 1

Rental Properties: The (Real) Real Estate


I have been pounding the table for months: Real estate has bottomed out and it's time to take advantage. Yet, while prices are at or near historic lows, not everyone agrees. Many claim that we still have a ways to go before the rebound hits. They make the point that although foreclosures are dwindling, there are stragglers in the pipeline. They claim that while there's been some recovery in the economy, if it doesn't pan out, another wave of distressed homeowners is going to drag real estate prices down even further... I doubt it. But, that aside, there's no point in debating because as far as investing is concerned, the outcome is irrelevant. Why? Because Real estate in SW Florida is so ridiculously cheap at the moment that it doesn't matter one bit what happens with the market over the next couple of years. Now Is The Time To Buy Real Estate... Period Florida Real Estate is on Fire! HG Real Estate Services is a HYBRID type of real estate servicing company.

We do bank clean-outs, cash for keys, Short Sales, Broker Price Opinions, Property Maintenance, Property Management, etc. We manage and maintain a whole bunch of single family homes and have maintenance crews and licensed jobbers on call for just about anything. If Real Estate is involved and a service needs to be done, we can do it. We are approved with over 227 banks and asset management companies. (They have our number on Speed-Dial.) There are 77 MILLION Baby Boomers approaching retirement age. They are FLEEING high tax states - They are Retiring, and statistically, 22% of them move to Florida. Now, I know you what youre thinking ..... Yea - thats all well and good, but I dont want a thing to do with tenants, maintenance, and all that stuff. Have no fear - I have a solution! HG Real Estate Services is a One-Stop-Shop and will do it for you. The only thing youll need to do is go out to the mail box and pick up the check .... (Our Clients call it Mail-Box Money) and, if thats too much for you, well transfer the funds right into your bank account while you travel or play golf!
Call 941-584-7400 for More Information

Florida Employment Positively Promising


It is important to look at year-over-year changes in the housing market due to seasonality. Employment is affected by seasons so the only real way to measure employment in Florida is year over year. Floridas total non-farm employment is the combination of private employment and government employment. Nonfarm employment is the main category we consider, though private employment is a key driver of economic growth. The graph shows the year-over-year change in Floridas total non-farm and private employment from 2008 to

present. We felt the hurt from job losses in 2008 and although the turnaround isnt as steep, we dont want to digest the good news in employment.

It is clear that each month since August 2010 has experienced positive-growth in employment on a year-over-year basis. In May 2012, Florida employment was 8,506,000, about 200,000 more than in May 2011. As the jobs number have improved, so has Floridas unemployment. EVERYONE should recognize the positive news in the job market. We know as Florida makes employment gains, the states real estate market will improve.

Florida is: ** #3 in the Country for Population growth (following CA


and TX)

** #2 in the Country for Job Growth!

Looking for someone to speak to your Club or Rotary group about the Real Estate Market? Paul is an entertaining and informative presenter, and an EXPERT in the local Real Estate Market. Contact Paul at Paul@PBForsberg.com 2012 by Paul Forsberg CCIM Candidate All rights reserved ! ! ! ! ! ! ! Page 2

The Real Estate Business In SW Florida Has Been Smokin Hot And My OfLice Has Been As Busy As A One-Armed Paper Hanger!
REGARDLESS of what the media message is, or what kind of Kool-Aid they are trying to make you drink, The Florida Real Estate Market is HOT. Unless some sort of financial catastrophe occurs,(usually created by clueless Washington Bureaucrats), what happens in Arizona, California, or Maine, has little or no effect on the market in Florida. Prices are coming up. Offers are increasing and the volume increase has been HUGE. Money in Motion has increased over 84 % compared to last year! Cash buyers from all over the world are here buying just about everything in site. Many have had their eyes on foreclosures, bank owned properties and handy-man properties.

because Nobody is buying on projected numbers in this phase of the market cycle - period. Banks wont lend on projections, and there are plenty of properties available on the market. Its all about the numbers. I believe anyone marketing a property based on Pro-forma is pretty-much wasting everyones time.

If you are interested in selling a property, the >irst thing you need to do is get the numbers right. I have a FREE Special Report titled: Make Sure You Are Going to Get Top Dollar When You Sell In it are 2 Strategies and 6 Tips you need to know and do before putting a commercial property up for sale. If you would like a copy of the report, simply call 1-800 261-0454 ID # 7022 Dont worry - the report is free and you are under no obligation to buy anything.

on an almost daily basis. When it comes to a bank REO sale, it is out of control - smart buyers are sticking with non-bank owned homes that need little or no work. They are getting better deals. In North Port, back in 2011, you could buy a single family home built after 2000 for $50 - $70K. The same homes are now selling for $125 - $130k. Its all good because the increase in volume in the housing sales has begun to bring builders back into the market. And we all know that is the real driver of the Florida economy. Home sales have been so brisk, my associate Connie Nowell is offering her sellers an almost unheard of Home Selling Guarantee - She GUARANTEES to sell their home in 121 days, or Shell Sell It For FREE!

Personally I am dealing with three individual investors. 1 German, 1 Canadian, and 1 New Yorker with deep pockets, loads of cash, and have have A+ credit. They are buying everything they Over the past 3 months, we have closed can get their hands on. on over $4,000,000 of commercial property and have over $6,000,000 in They Are Paying Top Dollar as long as offers out. the properties are priced properly. Combined, they have about $18,000,000 Properties need to be occupied with (eighteen million good leases. dollars) Leverage up Offering prices are based on actual at 75% LTV, were >inancials - NOT Pro-forma numbers. looking at Seventy (They wont even look at a pro-forma). Two Million Dollars. If you are even One of the biggest challenges I am thinking of selling a having is sifting through all of the commercial property, deceptively marketed properties with give me a call for a no pro-forma numbers made to look as obligation actuals. A complete waste of time as far conversation about as I am concerned. the property. Maybe In my opinion, those brokering we can put something properties with pro-forma numbers are together. doing a disservice to their sellers and ought to have their head examined On the single family homes front, my of>ice is seeing multiple offer situations 2012 by Paul Forsberg CCIM Candidate All rights reserved ! ! ! !

The same investors were buying single family homes a year ago, and now that the single family home market has switched to a sellers market, they have switched strategies and only want commercial income properties.

www.Soldin121Days.com

Lot sales, in general, have been brisk. six (6) months ago, you could buy lots all over the place for $1,500 to $2,500 each. Now, they are in the $3,500 to $5,000 price range. The bottom of the market has moved up 60% to 100% over the past 6 months. It has been a great time to buy at the

Continued on page 5 See Real Estate Business

bottom and many investors have been ! ! ! Page 3

Multi Family properties in the area seem to have turned the corner in 2012. The graph on the left above indicates the County is up 4.2%. FINALLY it looks as though the trend is beginning to make a coming back.

Industrial properties seem to be making a little bit of a comeback as far as leasing goes (chart on left), but sale price trends are still falling. I predict, as residential sales and construction continues on the upswing, sale prices of Industrial properties will also begin to increase.

Retail Sale trends have been bouncing around what looks like the bottom for quite some time. As you can see in the chart to the right, leases in the city fell o the cli in 2011 it but looks like they are making a rapid comeback. As Lease rates increase, so will property values. If youre thinking of buying retail space, now may be a good time.
Oce Properties are still struggling a bit. It looks as though they are trying to establish a bottom. We recently closed on a fully-rented Medical Oce building in great condition and within walking distance to a Hospital at a 10Cap. The seller was happy to sell, and the buyer was happy with the purchase. A True Win-Win transaction!

Real Estate News You Can Use (941) 584-7400 www.FL-CommercialRealEstate.com February 2013

Real Estate Business Continued from page 3


North Port is BOOMING. The city council made the decision to make North Port a business friendly town, and the results are astonishing! The main drag of North Port on RT 41 is building shopping centers, restaurants, banks, commercial centers and more like crazy. Benderson Development is building and National Big-Box Stores have moving in! Major employers are looking at the area and are negotiating with the city. All good signs for North Port and it shows. Long story short ... .......... The SW Florida Real Estate Market is smokin hot! We are back in the upward phase of the business cycle. Our of>ice is Smack-Dab in the middle of North Port. 14385 Tamiami Trail North Port, FL 34287 941-584-7400 Right alongside the Olde World Restaurant. Next time youre in town, stop by and say hello!

5 Ways to Avoid Running Out of Money During Retirement ....


One of the Biggest Risks Retirees Make is Running Out of Money During Retirement Dont Let That Happen To You Even if you have something else in place, this FREE REPORT Includes Research You Can Use Right Now! Call 1-800-261-0454 ID #7040

How To: Sell Your Commercial Property for Top Dollar, Eliminate Capital Gains Tax and Create an Annuity All At The Same Time! 800-261-0454 ID# 7036
This SECRET Sales Method Attracts Eager ~ Motivated Buyers Like a Super Strong Steel-Magnet!
You dont want to miss it!

Find Out What Commercial Properties Down The Street Sold For.
You can receive a FREE Computerized printout of recent commercial property sales and current listings in your area or any other area of your interest. Mailed To You at NO COST or OBLIGATION You dont have to talk to anyone. Just call the 24 hour Hotline and leave a message about what type of property and area you would like to have information on. This information will give you a good idea of what your property might sell for if you were to put it up for sale in todays market. To receive your unique FREE Area Sales Report Call Our 24 HOUR HOTLINE 1-800-261-0454 EXT #7034
2012 by Paul Forsberg CCIM Candidate All rights reserved ! ! ! ! ! ! ! Page 5

Real Estate Investors Corner Everyone knows investing in real estate is a no-brainer

way to nancial independence and real - long term wealth. The problem is, land-lording can be a real hassle. ESPECIALLY for long distance landlords. The key to protable real estate investing is having a reliable and dependable support team.
HG Real Estate Services is a HYBRID property management company - we do ALL the work for you. Locating tenants, clean-outs, maintenance, lease-ups and more! Let HG Real Estate Services do the work for you! Now is the time to buy, for cash \low and appreciation. Offset your retirement income with rental income and enjoy numerous tax write-offs and travel bene\its!

FREE Information Corner


Valuable FREE reports for Buyers mailed to you at no cost or obligation. Call Anytime, 24 hrs a day to 1-800-261-0454 and enter the ID# of the information you would like to receive. THREE SECRETS - To Having an Oer On Your Commercial Property Within 72 Hours ..............ID# 7024 WHAT 99% OF INVESTORS DONT KNOW - Cash Flow Secrets of Successful Commercial Real Estate Investors ........................................................... ID# 7042 SEVEN MISTAKES TO AVOID WHEN SELLING A COMMERCIAL PROPERTY - Just Making ONE of These Costly Mistakes Can Cost You Tens of Thousands of Dollars .............................ID# 7020 FIVE QUICK STEPS - To Full Occupancy in Your Commercial Property ..... a CRASH COURSE ..... ID# 7033 HOW TO MAKE SURE YOU GET TOP DOLLAR WHEN YOU SELL - 3 Strategies and 6 Tips ................... ID# 7022 SHORT SALES - FORECLOSURES - BANK-OWNED INCOME PROPERTIES - Free List with Pictures of all the available distressed properRes currently available............................................................ID# 7043

LANDLORDS Done-For-You Property Management Automated - Online and Painless! Let us handle all your land-lording needs. Peace of Mind Is Perhaps The Greatest BeneXit We Offer Our Property Owners. We Are Committed To Protecting Your Investment by locating quali>ied high quality tenants and the best possible service & preventive maintenance programs assuring you the Highest Equity Return on Your Investment. We Are So Sure Of Your Satisfaction, We Back It Up With A Full 6 Month Guarantee. If we dont do as we say - and youre not happy, we will tear up our agreement right there on the spot.

Call 941-584-7400 Today


Owning Rental Property is fun again! Marg Smith, Atlanta GA The money appears in my bank account without me doing a thing - Thanks HGRE! Mike M, Punta Gorda FL

COMMERCIAL DISTRESS SALES


FREE Computerized Printout of Distress Sales, Bank Foreclosures & REOs. You can have a printout mailed to you at NO Cost or Obligation. Please indicate which price range and preferred area and property type you want to receive information on. 1-800-261-0454 ID # 7043

~~ Vacant Land ~~
Theyre just not making it anymore
Sign-up for the Best Buy Hot List of Vacant Commercial Land investment opportuniRes in South West Florida! FREE Computerized Printout of commercial Lots, Land and Acreage sent to you at No Cost or Obligation FREE List with pictures 1-800-261-0454 ID # 7049 for more info.
2012 by Paul Forsberg CCIM Candidate

I have known Paul for over seven years. He is a very energetic, detailed orientated and very hardworking. He is a man of his word. He has been and always will be very successful. I HIGHLY recommend him. Kristine McMahon, Sr. Loan Consultant, The Manhattan Mortgage Company Hi highly recommend Paul to anyone interested in making money. Paul has proven time and time again to be a highly successful and ethical businessman in the field of real estate and marketing!Michael Thompson, Co-Founder, S.W. Florida Real Estate Investors Assoc.

All rights reserved ! !

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