Renewed Life in the Thurston County Commercial Sales Market
There is life in this market! The commercial sales market was hit hard in the recession and values have fallen. Sales have been few in number and primarily in the lower price ranges. With the exception of just a few properties, almost all sales were to owner/users who improved the properties for their own businesses.
Late 2014 and continuing in 2015 has been a turning point in the market. We are selling more property this year for higher prices. There are many reasons why the market is coming back:
- Confidence is Improving. Money that has been sitting; waiting for better times has decided that,
better times are here.
- Confidence is Improving II. Business owners are more confident in the future of their business,
allowing investment in expansion and more locations.
- Investors have returned. Commercial investors aren’t waiting any longer to see if prices will
fall further. They are convinced that the bottom has been hit.
- Interest rates will rise. No longer just talk, the promised rise in rates is really here,
spurring more buyers into action now.
- The stock market is scary. With a better business environment and relatively high stock prices,
commercial real estate looks better today as an alternative.
This is not to say that we have healed all our market’s wounds from the recession. No, we have a way to go until we can say the market is in balance and in good shape. However, it is definitely going in the right direction, and it is sustainable.