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2003 Business Gazette Article by Chad Tyler 03-26-2004
2003 Real Estate Outlook
 
For Immediate Release
Media Contact: Brian Duncan
Phone: 240.367.6490 or 301.668.5621
E-Mail: brian@tylerco.com
 
As you review this publication’s many facts and figures I’d like to take this opportunity to discuss the direction of the region’s Real Estate market as we see it transpiring for the next six to twelve months. Despite some who say the success of the 90’s seems so removed from today’s experience that, “it never happened” we have experienced increased activity in the past few months and expect this increase to remain steady until the third or fourth quarter of the calendar year where activity should increase significantly, albeit not necessarily to the degree it did during the 90’s.

As we review the past several months and the impact that events like 9-11 and the declining stock market have had on business transactions like Real Estate whether it be start-ups or expansions it is clear that confidence grew over the last quarter. None of us could have expected 9-11 and its impact on our collective psyche and thus the economy but many did forecast a typical beginning of the decade decline. But as with so much other advise in life it probably seemed alien to a large number of people that the economy could experience a cyclical decline. Too, few if any of the economic pundits predicted the massive reduction in net worth that would occur. As our grand fathers have noted these events reminded them of the types of declines they experienced in the 30’s (after the go-go days of the 20’s) as well as the early 60’s and what many of us experienced in the 80’s after some nice growth periods. But what goes up must come down, with the big difference being the 90’s were historically more excessive.

Now that many businesses have a renewed confidence as exemplified in particular with small and mid-sized businesses we will see space in core business areas leased up. Most large corporations who often have longer reaction times have not yet displayed this confidence and do not plan on expanding at this time. This leasing activity won’t have as large of an impact on large massive facilities as it will with space that was originally built for multi-tenant occupancy. However, special requirements such as the office of Home Land Security are an exception to this trend and will clearly have a positive impact on the market. Additionally, it may not be from direct leases with the various federal, state and local agencies directed to meet the goals of the Home Land legislation but from companies to which provide outsourcing support to the various government agencies.

Another impact the economy has had on Real Estate is that a lot of investors took money out of the stock market and moved their money into shopping centers, office buildings, flex space and various other types of real estate. Thus, this segment of the market has seen a large amount of wealth chasing too few potentially available properties. Also, where significant foreclosures occurred in past economic declines lending practices coupled with the actions of many astute Real Estate investors prevented this from taking place to past historic levels. Also, many companies who found it beneficial to own their own facilities in the past have sought the assistance of Real Estate companies in finding sale–lease back arrangements

Finally, whatever the national economy has experienced or is going to experience we feel like many of you that the greatest city/region in the free world will have opportunities presented to itself that other cities and regions can only hope for.

If you are interested in Real Estate investing, need space or would like to sell your property contact us at your earliest convenience and we will show you how the Tyler Team Advantage can work for you.
 
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