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Coldwell Banker Commercial Affiliates President Fred Schmidt weighs in on the state of commercial real estate.
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A -- of home price index is on the rises just heard and we're seeing other Green arrows slowly return to the housing space but what -- did commercial real estate here with more.
Is Fred Schmidt.
President and chief operating officer Colin thank -- for its welcome to so great to have you here frank you -- so when you look at that painful day like we have today with the stock market it makes you really wanna run around looking for alternative investments and some of -- -- shows that there are some opportunities in commercial real.
That's exactly the case given the volatility of the market actually makes the case for commercial real estate stocks bonds cash commodities all of them are very volatile right now.
Commercial real estate is a marathon it's not a sprint it's a good long term play and it's a good alternative investment that everyone should have on -- national local one global basis.
OK but you know the Wall Street Journal just today can now report and ten after long rebound.
Last couple years -- been a little wobbly to quote the journal for the commercial real estate industry it is that's sort of what you're seeing -- He -- long term macroeconomic trends in commercial real -- we're seeing a gradual decrease in supply about new constructions that a forty year low.
In the United States and demand occupancy which is.
Is drug is gradually increasing their four rents are stabilizing and that's making for.
And improved investment market restore impacted by the lot of macroeconomic conditions that are out there.
But overall supply and demand are in sync with each other.
And -- the bank lending working out because this is such a key factor to make not just commercial with so many other industries and small business across the -- and that's obviously very tied into commercial.
When we surveyed -- -- maker commercial 200 affiliates across the United States and its primary secondary tertiary markets some of the things that we glean from that interestingly enough over the last week.
Our Glendale California office.
Actually it was working with several clients that are looking for small business loans SBA loans and are getting about five and a half to five point 6%.
So from a lending standpoint in the smaller loans that one to ten million dollar -- we're starting to see more improvement.
We're also getting back to the older -- -- ways of doing business in the old as we have seller financing.
And full cash -- that are coming into the marketplace so there's still the moan about your issues are still little bit high with regard to commercial stupid overall.
We're seeing different alternatives in terms of financing property.
How do you do your homework and find these investment opportunities -- talk about some of the smaller markets he's tertiary markets how anyone cover those.
Well you need a good qualified commercial real estate experts such as a -- banker commercial expert.
And it to do the due diligence and the necessary things in the respective markets the ferret out those opportunities literally street by street block by block.
And then by product types and geography.
Fred -- many thanks for time and insight.
