Local commercial lease rates are headed up, and that may be good news for investors considering the switch from multifamily assets to “triple net” investments (NNN). Interviewed by KBND News in Bend for one of their podcasts, Pat Kesgard, with Compass Commercial Real Estate, thinks that commercial tenant might be in for a bumpy ride, saying:
…particularly, when you talk about industrial, or even retail, because there are not a lot of options out there…
Even though local commercial vacancies are near an all-time low, Kesgard thinks it’s difficult, but impossible, to find space. Getting prepared for it is critical, he continues:
You have to understand your lease; you have to start paying attention. Call your broker, and start seeing what your options are; talk to your banker, talk to your CPA.
His advice is to start the search for a new location as early as six to eight months in advance. But the flip side of that record is the opportunity for investors.
With current political impetus in Oregon toward rent control and changes to the law that might adversely affect multifamily owners, many are seeing this as a time to move into NNN properties. And, Kesgard notes, some commercial lease rates have gone up by 100%—possibly making this the time to switch.
Listen to the entire podcast here.
René Nelson specializes in all types of commercial and investment property and would welcome a discussion of your investment goals to help you decide if now is the time to make a change. Call René at (541) 912-6583 to get started today!
Recent Comments